Why invest in Money Market
Money market funds invest in short-term debt instruments like U.S. Treasury bills securities and other high quality corporate commercial paper. They are highly liquid and offer low yields compared to other debt instruments due to low credit risk. Their main purpose is ensuring safety of capital, they maintain their Net Asset Value(NAV) at $1. Interest is paid as dividends . They are not FDIC insured.
Key indicators to consider before investing
- Interest Rates
Top 2 ETF’s by Market Capitalization
|Name of the Fund||Ticker Symbol /Total AUM*||Year of Inception||Expense Ratio|
|iShares Barclays Short Treasury Bond||SHV||01/05/2007||0.15%|
|SPDR Lehman 1-3 Month T Bill||BIL||05/30/2007||0.14%|