VMSXX peaked a few days ago and is declining while VUSXX continues to rise. Time to swap.
Chasing the yield can be a little time consuming so let me do the work for you. As of today, VMSXX which is 100% federal tax free, is returning 3.43% (down from high of 3.76%) but remains above 5% tax equivalent for higher brackets. However it will likely continue to decline quickly in the coming days. It runs on a predictable and cyclical path.
VUSXX (77% state tax free) continues to climb and is currently at 4.55% (tax equivalent just over 5% in higher taxed states).
If you pay higher state taxes, VUSXX is looking tastier and should once again be king of the money market funds at Vanguard for the coming weeks even with the partial tax exemption.
Edit: Yes, 6 month T-Bills are great as well, but this post is re MMFs
Submitted February 24, 2023 at 08:14PM by bluewave358 https://ift.tt/DXBcjne
