I had a fair amount of my ‘fixed-income’ money in a couple of no-load, very low-fee “short-term investment-grade” funds offered by a very large US brokerage house.

I think hard about what Jim said, "Only cash is cash."
Bond funds are not cash. US government MM funds and FDIC insured savings accounts are the closest things I consider as cash.


It appears that many of these treasury/government MM funds are heavy in Repurchase Agreements. Isn't there a bit of counterparty risk?
For sure they are not 100% state tax exempt like actual Treasuries.


SPAXX - Fidelity Government Money Market Fund
yield - 4.00%
U.S. Government Repurchase Agreements 36.43%
U.S. Treasury Bills 34.10%
Agency Floating-Rate Securities 22.67%
Agency Fixed-Rate Securities 5.25%
U.S. Treasury Coupons 4.50%

FDLXX - Fidelity Treasury Only Money Market Fund
Yield: 3.91%
U.S. Treasury Bills 100.35%
U.S. Treasury Coupons 8.43%



The Vanguard funds are similar, but higher yield because of lower E/R.

VMFXX - Vanguard Federal Money Market Fund
Yield: 4.25%
Repurchase Agreements 32.90%
U.S. Govt. Obligations 33.80%
U.S. Treasury Bills 32.80%
Yankee/Foreign 0.50%

VUSXX - Vanguard Treasury Money Market Fund
Yield: 4.27%
U.S. Treasury Bills 97.90%
U.S. Govt. Obligations 2.10%

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