For periods shorter than the duration, of course they are risky. For periods longer than the average duration, they still have some risk.
What is interesting is that many money market funds appear to be safe, even though they are actually very short-term bond funds with durations of a month or two. Somehow, the best ones, like Vanguard's, make it work. They must eat the shorter term costs internally to give a product that practically never loses money.
What is interesting is that many money market funds appear to be safe, even though they are actually very short-term bond funds with durations of a month or two. Somehow, the best ones, like Vanguard's, make it work. They must eat the shorter term costs internally to give a product that practically never loses money.
Statistics: Posted by ReadyOrNot — Sat Dec 06, 2025 3:11 am — Replies 12 — Views 847