Vanguard Closes Treasury Money Market Fund to New Investors

VALLEY FORGE, PA (April 16, 2020)—Vanguard today closed its $39.5 billion Treasury Money Market Fund (VUSXX) to new shareholder accounts. The company is seeking to protect existing Fund shareholders from high levels of cash flow that could potentially accelerate reductions to the Fund’s yield. Existing shareholders of the Fund can continue to make purchases with no limits.

Vanguard believes that money market funds provide significant value to investors as a stable and convenient cash equivalent instrument. However, an increase in demand for high-quality government money market funds, combined with extremely low yields on U.S. Treasury securities, may have the effect of reducing the Fund’s yield, as new cash flow is invested in lower-yielding securities.

Vanguard is taking this prudent step to temper cash flows and will continue to monitor the Fund and employ additional measures if needed. Vanguard has taken similar pre-emptive measures during prolonged low-interest rate environments.

Prospective investors will continue to have access to other portfolios in Vanguard’s $414 billion low-cost lineup of money market funds, including Vanguard Prime Money Market Fund, Vanguard Federal Money Market Fund, and Vanguard’s national and state-specific tax-exempt money market funds. Vanguard continues to manage its money market funds very conservatively, focusing only on the highest-quality short-term money market instruments.    

 

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About Vanguard

Vanguard is one of the world’s largest investment management companies. As of March 31, 2020, Vanguard managed $5.3 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 425 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

Asset figures are as of March 31, 2020 unless otherwise noted.

For more information about Vanguard funds, visit vanguard.com or call 800-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest.

Vanguard Treasury Money Market and Federal Money Market Funds: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Vanguard Prime Money Market, Municipal Money Market, California Municipal Money Market, New Jersey Municipal Money Market, New York Municipal Money Market, and Pennsylvania Municipal Money Market Funds: The fund is only available to retail investors (natural persons). You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Vanguard Marketing Corporation, Distributor of the Vanguard Funds.