I was reading about Vanguard's Prime Money Market Fund, VMMXX, whose investments are characterized thusly by Investopedia:

The holdings include U.S. Treasury bills (T-bills) with a 24.1% portfolio weighting, U.S. government obligations at 11.8%, U.S. commercial paper at 4.2%, certificates of deposit (CDs) at 10.6%, and Yankee/foreign obligations at 47.8%.

So it's largely bonds. That said, I am confused as to why the Morningstar portfolio summary for VMMXX describes it as 16% bonds and 81% cash.

Is it just inaccurate site lacking in details, or am I misunderstanding what it's telling me? I have always used it for a quick glance at what a certain fund's holdings are made of.


Morningstar's definition of cash includes "cash equivalents (fixed-income securities with a maturity of one year or less)". So I'm guessing 81% of its holdings are short-term enough to fall into this category.

  • 3
    As one would expect for a Money Market fund...
    – 0xFEE1DEAD
    Sep 27 '17 at 13:27

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