Emergency reserves and short-term retirement withdrawal liquidity buffer. Keeps money safe from market volatility.
BIL or SHV are excellent choices for short-term liquidity backed by U.S. Treasury bills. VMFXX is Vanguard's core sweep money market account for cash balances. Keep emergency funds separate from the investment portfolio.
Interest Earned: Taxable as ordinary income.
| Fund | Symbol | Type | Expense Ratio | Market Cap / AUM | Live Price | Index / Benchmark / Notes |
|---|---|---|---|---|---|---|
| Vanguard Federal Money Market Fund | VMFXX | Stock | 0.11% | $375.7B | $1.00 | 99.5% U.S. Government Cash Equivalents Vanguard core money market sweep fund |
| Vanguard Ultra-Short Bond ETF | VUSB | ETF | 0.10% | $10.2B | $49.41 | 0-2 Year Short Duration Bonds Ultra-short non-treasury corporate bond mix |
| SPDR Bloomberg 1-3 Month T-Bill ETF | BIL | ETF | 0.14% | $49.9B | $91.43 | Bloomberg 1-3 Month U.S. Treasury Bill Index 1-3 Month Treasury Bills; Recommended ETF |
| iShares Short Treasury Bond ETF | SHV | ETF | 0.15% | $23.6B | $110.07 | ICE Short US Treasury Securities Index 1-12 Month US Treasury Securities |