There are disadvantages to an ETF compared with a MMF. The whole purpose of keeping some funds in cash is so that it's readily accessible when you need it. SGOV already existed before VBIL and SGOV did not cause an exodus from MMFs into SGOV, and there is no reason to think that VBIL will be any different. There is a HUGE demand for MMFs, and these ETFs are not going to change that. So I think Vanguard's excellent MMF yields remain one of Vanguard's advantages.You could pay no ER to just have individual T-bills, maybe that was the idea. Which I've sometimes done, but currently my 'cash as an asset' allocation is principally VUSXX, at Vanguard, for convenience. But like the above poster I use VBIL in a Schwab account (ex-TD Ameritrade IRA account I use for adjusting overall portfolio position with stock/bond futures). VBIL is a useful new tool for getting around the poor rates on cash of most non-Vang brokers. It may have been mentioned earlier but that also seems to pose an interesting strategic question for Vang. VBIL tends to undermine one of their remaining clear advantages as a broker, better rate on cash. But somebody else would do it (or has? I don't know) anyway and it's sometimes speculated Vang may want to focus in the long run on being an asset manager and not a broker.
The treasury money market fund that you own at Vanguard has the same 0.07% expense ratio as VBIL (assuming you're talking about VUSXX).
Statistics: Posted by snic — Sun Aug 24, 2025 8:22 am — Replies 250 — Views 53287