VMFXX Money Market — Vanguard Federal Money Market Fund

Vanguard Federal Money Market Fund (VMFXX)

VMFXX is a low-cost Money Market. As of August 28, 2026, its distribution rate is 3.65%, its trailing-12-month yield is 3.76%, its expense ratio is 0.11%. Fund total return is 25.3% over the past 27.4 years, 809.7 points behind SPY at 835.0%.

At the current 3.65% distribution rate, a $10,000 investment would generate approximately $365 per year, or $30.42 per month on an equivalent basis.

Vanguard Federal Money Market Fund is a money market fund that seeks current income while maintaining liquidity and a stable share price of $1 by investing at least 99.5% of assets in cash, U.S. government securities, and repurchase agreements collateralized by U.S. government securities. The fund distributes income monthly and carries a current distribution rate in the mid-single digits, reflecting prevailing short-term interest rates. It appeals to conservative investors with short-term savings goals who prioritize capital preservation and liquidity over growth.

VMFXX performance versus SPY

Data as of August 28, 2026.

Fund total return is 25.3% over the past 27.4 years, 809.7 points behind SPY at 835.0%.

VMFXX key facts

Data as of August 28, 2026.

Issuer

Vanguard

Asset type

Money Market

Asset class

Fixed Income

Inception date

07/13/1981

Expense ratio

0.11%

Distribution rate

3.65%

Distribution frequency

Monthly

Trailing yield

3.76%

Last close

$1.00

AUM

$286,881,054,720

Average volume

0.0

Last dividend

$0.0030

Ex-dividend date

07/31/2026

Payment date

08/03/2026

Beta

0.0036

How Dividend Vision calculates yield and returns

Distribution rate (3.65%) is the latest regular payout annualized by the fund's stated frequency, divided by the last close. Issuers often publish this as “Distribution Rate” on the fact sheet. Trailing-12-month yield (3.76%) is the sum of distributions paid in the last 12 months, split-adjusted, divided by the last close. It lags a recent raise or cut. We show a 30-day SEC yield when the fund publishes one. Schwab and other issuers may report a TTM distribution yield or SEC yield on a different date — all can be valid; they are not interchangeable. Fund total return uses split-adjusted close with distributions reinvested from the first stored bar on or after inception through the latest bar, compared with the same window on the benchmark. That is what the fund did, not your personal gain/loss. Figures below use Dividend Vision data as of August 28, 2026.

Distribution rate methodology · Distribution Safety Score methodology · SEC yield

Sources and review

Data as of August 28, 2026.

Primary sources: Vanguard fund page; prices and distributions from Dividend Vision, derived from vendor EOD data.

Reviewed by Bert Sweet, CEO and Co-owner of Dividend Vision. Methodology: Distribution Safety Score.

VMFXX risks and drawbacks

VMFXX's current distribution rate is moderate, not a high-yield payout — the strategy is dividend quality more than maximum income. Total return has trailed SPY over the available window.

Who may consider VMFXX — and who may not

VMFXX may suit someone looking for low-cost broad dividend exposure, moderate current income with a quality tilt. It is a weaker fit for investors hunting double-digit covered-call yields; investors whose main goal is matching SPY total return. This is educational context, not a recommendation to buy or sell.

Compare VMFXX

VMFXX vs similar funds:

• VMFXX vs SGOV

Frequently asked questions

More funds from Vanguard.