Money Markets

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%

 

 

 

 

 

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