What's the question?I have a related question but I don't have a definite time period to spend the money as it is sort of the emergency fund bucket. Currently VMFXX seems to be giving 5.19% yield while BND is giving 3.6% distribution yield and little higher SEC yield. Assuming fed fund rate decreasing say 1% over the next year I would expect VMFXX yield may go down to 4% while BND NAV could possibly rise 5-10%(guessing) in the next couple of years. Once the feds stop the rate lowering cycle, I may move it back to VMFXX as I am not too fond of BND due to the higher volatility. Even if it doesn't happen this way perhaps the difference between VMFXX and BND may not be a too great in the next 2-3 years. Will be great if BND comes out much ahead.
Statistics: Posted by watchnerd — Fri Sep 20, 2024 12:34 am — Replies 10 — Views 912