Earn Rising Rates With Money Market Funds

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Title	:	Earn Rising Rates With Money Market Funds
Lasting	:	14.15
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Comment from : PensionCraft

Thank you for researching and sharing the money market funds available 🙏
Comment from : Amie Di

Great video Very informative Pity, the graphs are not well presented
Comment from : John Headwall

Thank you, it's very interesting As I am from an EU country, I noticed Amundi has been offering money market funds A couple of years ago, I found those funds unattractive As you say, these funds underperform the shares and the market in the long run However, with the interest rates we have had, their yield went up It's indeed more profitable than a savings account, but unlike the savings account the investment is not insured
Comment from : Petr Palecka

Is the current annualised interest for the Sterling MM the Yield to Maturity which is now at 494? And does the same apply for other bonds ie Vanguard USD Corporate Bond Yield to Maturity is now shown as 55 ?
Comment from : Peter Buck

Couple of thoughts having dipped my toe in now You talk a lot about locking in your money in a fixed term savings account Perhaps worth saying that the flipside of that is that you're also locking in a yield/rate The MMFs are more like easy access savings of course which is why you talk about not holding them for too long and things will change quite quickly when (/if :-)) Bank of England rates fall It's possible currently to get fixed savings accounts at 6 months, 9 months, 1, 2 and 3 years all at 6 (pre-tax) I doubt MMFs will be achieving that over those time frames So for those looking for a bit more predictability, it might look quite clever in a couple of years to have locked in those rates Of course you can do similar through gilts, achieving about 5 pa over 2/3 years (tax position complicated, but this is based on low coupon gilts, so most of the gain is tax free) The income funds are indeed a bit of a headache The one I used quotes a distribution yield which turns out to be a 12 month forward looking yield (with no explanation of methodology or assumptions) My platform quotes a 12 month backward looking yield (a useless measure on this) You also have to deal with the unit price dropping at the ex-dividend date so there's a mental hurdle (as the calculation is uncertain) about when to buy in/sell out Accumulation easier as you say, but they're harder to find ii does not have the UK acc funds you mentioned They do have Blackrock ICS Sterling Government Liquidity (OCF 010) which is what Wise use for the interest option on balances (although with their own charge layered on top)
Comment from : Stuart B

Hi thanks for the video but not finding these money market funds in my Vanguard ISA account [Federal Money Market Fund (VMFXX) brSterling Short-term Market Fund (ISIN: GB00BGB6GZ57)] Any reason for this? Ironically the brVanguard Sterling Short-term Market Fund is available on other providers in their SIPP/ISA
Comment from : Sonix

Fidelities Money Market relies heavily upon reverse repos What are the risk associated with that? It's swelled to over 25 trillion, and I don't think that was the intention
Comment from : vwbustube

Thank you for the great contents
Comment from : Rainer Guenzel

The great thing about most money market funds is trading fees are tiny or zero
Comment from : Simon Turner

Hi Ramin, why is there no Short Term UK Treasury bond Fund similar to say iShares $ Treasury Bond 1-3yr ?
Comment from : Jeffrey Croft

Hi Ramin, thank you again for another great explainer It's so important to get this knowledge out there! Are gains from Money Market Funds considered a 'capital gain' rather than interest? Cheers
Comment from : Jake

Great video Ramin Did you miss an important point though - that unlike savings, returns from these funds would be subject to Capital Gains Tax here in the UK? The allowance is around 6k for this financial year, whereas the savings allowance is far lower
Comment from : Toby Simpson

Thank you for this Ramin! brbrAfter the market has continued to go whacka-doo the last week, I actually liquidated my index funds and kept them in MMFs I had no idea I could save nearly 4x the money market fund expenses for my SEP IRA by using Vanguard over Fidelity brbrI was ready to cut over to Vanguard until I realized I could invest in Treasury ETFs like USFR, which has 30 day yields of 524 and low expense ratios
Comment from : Jash Yotes

Abrdn sterling money market is the best in the UK in my opinion Available on HL
Comment from : Richard Mason

If you bought those short-term UK gilts earlier this year you would be getting a significantly lower yield than if bought them this month Actuality, though, is that as investment asset the total return on your bonds is less than the expected rate of return for stocks these days, so you are likely reducing the long-term return on your investment portfolio
Comment from : ED G

Thank you!
Comment from : Gabor H

Personally, I wouldn’t touch them with a barge pole taking into account where we are in the cycle at the moment Short term gain for long-term pain Keep your powder dry!
Comment from : ScotDoc

One option is a Wise account, held in whatever currency, and turn on the interest mode These invest in blackrock funds and so pay good interest Currently 422 on GBP after fees
Comment from : Jamie OShaughnessy

Thanks for shedding light on an asset class that most are not close to I would probably say one of the drawback if you deposit in MMF is you lose you isa allowance for a small return as opposed of just going sit a fixed term isa
Comment from : Hussam kamel

I don’t understand the point if instant access savings offer better rates? Am I missing something here
Comment from : informer

Anyone know if there is an equivalent on trading 212
Comment from : informer

What money market funds can be found in the eu zone ?
Comment from : Marco K

Wagwan my slime pension craft my drilla man's tryna get bare peas u know got any tips my bredrenbrFrom the mandem
Comment from : AwesomeBob565

I bought several 6 month Vanguard brokerage CDs, staying at the $250,000 FDIC Insurance limit on each one The rates are higher than Bank CDs
Comment from : Dan

I now see 1 year fixed cash isas paying 5 or just over
Comment from : Fred Atlas

Just hope interest rates stay high for sufficient time to nab a bargain house
Comment from : Celeste Canyon

The only risk is that MM funds dont hold securities to maturity
Comment from : Jimbo Jimbo

Great video as always :) Any suggestions for money market funds in the EU? I am not able to invest in the funds you mention
Comment from : jelbic

What happens when the interest rates fall again? Would the value of the Money market fund drop?
Comment from : Ben TP

SWVXX also
Comment from : masoncnc

Stupid question, but if interest rates drop do you lose money?
Comment from : Andrew

Hi, Vanguard's Sterling Short-Term Money Market Fund is NOT available at Vanguard SIPP, is it? Hope I am not being stupid, new to investing
Comment from : JJ

Aren't money market funds potentially illiquid when investors suddenly all want to sell at the same time? Isn't the corporate bond market potentially illiquid because there aren't market makers?
Comment from : George

👌🏻 great video once again Ramin
Comment from : Tom Otto

Money market funds are sensitive to liquidity risk A sharp, sudden crisis and cash will evaporate from these funds leaving you with a capital loss if you try and liquidate
Comment from : Big Dawg

Currently 50 US equities, 50 SONIA tracker
Comment from : Duncan

banks saving accounts pay more 59 one-year fix brBut you will still lose the capital as it is below the inflation rate
Comment from : Han

Thanks Ramin 😊
Comment from : Alex M

Interesting options on the table Personally, I’ve gone down the fixed savings bond route Hargreaves have an array of options on their savings account offerings with maturity dates ranging from 3 months to 5yrs and median deposit of £1k depending on the issuer
Comment from : Tk Muns

I was thinking of changing my default pension fund to one that has 100 equity, instead of the default one that has 20 bonds Reason being that I’m in my mid thirties and will be working for the next 30years at least Sounds like bonds are performing well in this high interest period, any way I can check the performance of just the bonds allocation of the portfolio?
Comment from : Marco Renato

Why’re you ignoring easy access savings accounts which are currently returning 44 without the restrictions of a fixed account Important not to forget about trading costs on a money market fund too
Comment from : Whoop

Doing just this in my SIPP at the moment 489 last month
Comment from : Paul Mussett

hi ramin thanks for the video which money market would you go for on trading 212? Keep up the good work!
Comment from : Jamie Winstanley

Been looking at Vanguard's Sterling Short-Term Money Market Fund (Income) for a while as a vehicle to park some cash for the short term Given the monthly reset in the funds value, would it be sensible to invest at the start of the month, opposed to the end of the month - when the funds value is technically at its most expensive?
Comment from : Graeme Crompton

Appreciate the video Ramin One thing I'm struggling to find a definitive answer on is the tax treatment of Money Market funds held outside an ISA (ISA allowance already used) some say it is taxed like savings others say it's taxed like equities, I like the CSH2 ETF do you know how this would be taxed?
Comment from : Lee Newell