What is a money market fund?

A money market fund is a mutual fund that holds short-term, high-quality debt — Treasury bills, government repos, and commercial paper — aiming to keep a stable $1.00 share price while paying a yield close to short-term interest rates. It is a place to hold cash, not a long-term growth investment.

Are money market funds the same as a high-yield savings account?

They serve a similar purpose but are not identical. Money market funds are securities, not bank deposits, so they are not FDIC-insured, and their yield floats with short-term rates. They often pay more than a savings account, especially when rates are high.

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Money Market Funds

How This List Is Built

Cash-equivalent funds holding short-term government and corporate debt, ranked by assets.

We identify money market funds by name across both mutual funds and the newer money-market ETFs, then rank them by assets under management in US dollars. Money market funds are a cash-management vehicle — kept separate from the equity, bond, and options-income funds on the other lists.

Frequently Asked Questions

What is a money market fund?: A money market fund is a mutual fund that holds short-term, high-quality debt — Treasury bills, government repos, and commercial paper — aiming to keep a stable $1.00 share price while paying a yield close to short-term interest rates. It is a place to hold cash, not a long-term growth investment.
Are money market funds the same as a high-yield savings account?: They serve a similar purpose but are not identical. Money market funds are securities, not bank deposits, so they are not FDIC-insured, and their yield floats with short-term rates. They often pay more than a savings account, especially when rates are high.