11
The Best Money Market Mutual Funds Of 2026
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5 Best Money Market Funds of 2026
Fidelity Money Market Fund (SPRXX)
Fidelity Money Market (SPRXX)
Expense Ratio
0.42%
Total Assets
$136.1 billion
Yield
3.34% (as of April 2)
0.42%
$136.1 billion
3.34% (as of April 2)
Why We Like It
The Fidelity Money Market Fund requires a minimum initial investment of only one dollar. While this may seem thrifty, an expense ratio of 0.42% is relatively high compared to other funds highlighted on this list.
The bulk of SPRXX’s holdings are in U.S. Treasury repurchase agreements. Repos, as they’re also known, are overnight loans to the Federal Reserve, backed by U.S. Treasurys. The Federal Reserve buys them back the next day at a slightly higher price. That price premium is their implicit interest rate.
SPRXX’s holdings also include other types of repos, commercial debt and certificates of deposit.
Schwab Value Advantage Money Fund Investor (SWVXX)
Schwab Prime Advantage Money Investor (SWVXX)
Expense Ratio
0.34%
Total Assets
$396.1 billion
Yield
3.49% (as of April 2)
0.34%
$396.1 billion
3.49% (as of April 2)
Why We Like It
The Schwab Value Advantage Money Fund benefited from Schwab shifting its so-called sweep money out of low-yield bank deposits and into higher-yield money funds.
SWVXX now holds more than $390 billion in assets. Federal Reserve repurchase agreements are SWVXX’s largest single type of holding. There are over 700 holdings in this fund, with the top 10 holdings accounting for about a quarter of the portfolio. Other holdings include CDs and financial institution commercial papers.
T. Rowe Price U.S. Treasury Money Fund Z (PRTXX)
T. Rowe Price U.S. Treasury Money (PRTXX)
Expense Ratio
0.31%
Total Assets
$14.2 billion
Yield (annualized simple)
3.43% (as of April 2)
(Annualized Simple)
0.31%
$14.2 billion
3.43% (as of April 2)
(Annualized Simple)
Why We Like It
T. Rowe Price U.S. Treasury Money fund is yet another money market fund on our list in which repurchase agreements account for most fund holdings. In fact, the fund has a commitment to invest at least 80% of the fund’s assets into U.S. Treasurys to achieve its goal of operating as a “government money market fund.”
The fund requires a minimum of at least $1.
JPMorgan Liquid Assets Money Market Fund (MJLXX)
JPMorgan Liquid Assets Money Market Morgan (MJLXX)
Expense Ratio
0.59%
Total Assets
$85.6 billion
Yield
3.27% (as of April 2)
0.59%
$85.6 billion
3.27% (as of April 2)
Why We Like It
MJLXX investing in “high-quality, short-term money market instruments.” Investments, like many others on this fund list, include U.S. Treasury debt, financial institution commercial papers, CDs and Treasury repurchase agreements, among others.
With over half of the bonds in this fund rated AAA, investors can be confident in the safety of its portfolio.
Vanguard Federal Money Market Fund (VMFXX)
Vanguard Federal Money Market Investor (VMFXX)
Expense Ratio
0.110%
Total Assets
$374.2 billion
Yield
3.64% (as of April 2)
0.110%
$374.2 billion
3.64% (as of April 2)
Why We Like It
With more than $350 billion of assets, the Vanguard Federal Money Market Investor fund is the second-largest portfolio on our list of the best money market funds, after the Schwab Prime Advantage Money Investor fund—which we noted is a large “sweep” account.
VMFXX invests largely in securities issued by the U.S. government or its agencies. It also invests in repurchase agreements and U.S. Treasury bills. VMFXX maintains an average maturity range from 30 to 60 days or less.
If you’re interested in VMFXX, keep in mind that the attractive expense ratio comes with a minimal investment of $3,000.
Compare The 5 Best Money Market Mutual Funds
| Fund | Ticker | Expense Ratio | Yield (As of April 2) |
|---|---|---|---|
|
Fidelity Money Market
|
SPRXX
|
0.42%
|
3.34%
|
|
Schwab Prime Advantage Money Investor
|
SWVXX
|
0.34%
|
3.49%
|
|
T. Rowe Price U.S. Treasury Money
|
PRTXX
|
0.31%
|
3.41%
|
|
JPMorgan Liquid Assets Money Market Morgan
|
MJLXX
|
0.59%
|
3.27%
|
|
Vanguard Federal Money Market Investor
|
VMFXX
|
0.110%
|
3.64%
|
Methodology
To compile our list of the best money market mutual funds, we searched for funds with winning combinations of some key traits:
- Wide availability. Many funds offer high yields and charge investors low fees, but the funds are available only through certain brokerages, advisors or workplace retirement plans.
- Low minimums. We excluded all funds that demand initial investments of more than $3,000. In fact, many of the funds we included require just a $1 minimum.
- Low expense ratios. We screened for funds with the lowest expense ratios—all of our picks levy expense ratios of 0.60% or less.
- Highest possible yields. We screened out funds with yields of less than 3.00%.
- Large portfolios. We screened out funds with low asset levels.
Types of Money Market Funds
Money market mutual funds are categorized based on their investment holdings, typically falling into one of three types: government, prime or municipal funds.
Prime and municipal funds are further divided into retail or institutional classes, depending on the nature of their investors.
Government funds are required to hold a majority of their assets in government-issued securities, making them widely regarded as very low-risk investments.
Municipal money market funds invest in bonds issued by municipalities and municipal agencies, with the interest they pay generally exempt from federal income tax.
Prime money market funds focus on instruments such as corporate commercial paper, repurchase agreements, certificates of deposit (CDs) and other short-term debt securities issued by banks.
Which Is Better: Money Market Fund or Savings Account?
A savings account with a financial institution is the safest, most liquid option for holding cash. That’s because the Federal Deposit Insurance Corp. insures savings account deposits for up to $250,000 per account, per depositor.
That same insurance coverage applies to money market accounts (MMAs), which are available at banks and credit unions, but are not the same thing as similarly named money market mutual funds. Money market mutual funds, often referred to simply as money market funds, are investment securities, not bank accounts. As such, they lack FDIC insurance.
Still, money market funds are also low risk given that they invest in cash and securities guaranteed by the U.S. government, such as Treasury bills, Treasury notes and repurchase agreements based on government-backed obligations.