Vanguard Federal Money Market Fund Investor Shares Returns Calculator
Calculate historical returns and project future compounding for Vanguard Federal Money Market. Test different monthly amounts, tenures, and step-up scenarios using real historical NAV performance.
Category
Money Market (US)
AUM
$1.00 Million
Expense Ratio
0.11%
Fund Manager
Nafis T. Smith & Eion D'Anjou
Vanguard Federal Money Market Historical SIP Performance & Returns Table
Historical value of standard monthly SIP investments based on actual fund CAGRs.
| Monthly SIP | 3 Years @ 3.3% CAGR | 5 Years @ 3.3% CAGR | 10 Years @ 2.1% CAGR |
|---|---|---|---|
| $100/mo | $3,788 Invested: $3,600 | $6,528 Invested: $6,000 | $13,363 Invested: $12,000 |
| $250/mo | $9,470 Invested: $9,000 | $16,320 Invested: $15,000 | $33,409 Invested: $30,000 |
| $500/mo | $18,940 Invested: $18,000 | $32,641 Invested: $30,000 | $66,817 Invested: $60,000 |
| $1,000/mo | $37,880 Invested: $36,000 | $65,282 Invested: $60,000 | $133,634 Invested: $120,000 |
| $2,500/mo | $94,700 Invested: $90,000 | $163,205 Invested: $150,000 | $334,086 Invested: $300,000 |
* Projections calculated using actual historical 3-year (3.28%), 5-year (3.28%), and 10-year (2.1%) performance data. Actual mutual fund returns fluctuate with market NAV.
About Vanguard Federal Money Market Fund Investor Shares
Vanguard's flagship government money market fund and primary default settlement fund. VMFXX invests virtually 100% of assets in short-term US government securities and repo agreements at an ultra-low 0.11% expense ratio.
Investment Strategy
Government Money Market Strategy â Invests at least 99.5% of total assets in cash, US government securities, and repurchase agreements collateralized by government securities, targeting a stable $1.00 share price with maximum liquidity.
Key Facts
- Maintains a stable $1.00 net asset value (NAV) per share
- Ultra-low 0.11% expense ratio among the lowest in retail money market funds
- Default settlement account for millions of Vanguard brokerage accounts
- $3,000 minimum initial investment for standalone non-brokerage accounts
Historical Returns
3-Year CAGR
0.0%
5-Year CAGR
3.28% (Compound Yield)
10-Year CAGR
2.10% (Compound Yield)
Benchmark
FTSE 3-Month US Treasury Bill Index
Money market funds are not insured or guaranteed by the FDIC.
Top Holdings & Sector Allocation
As of September 2026, Vanguard Federal Money Market's portfolio includes:
Top 5 Holdings
- U.S. Treasury Bills & Notes (~60-70%)
- U.S. Government Agency Repurchase Agreements (~30-40%)
- Cash & Cash Equivalents (<1%)
Sector Allocation
U.S. Treasury Obligations 64.2%, Government Agency Repos 35.5%, Cash Equivalents 0.3%
Risk & Drawdowns
Near-zero NAV volatility with a stable $1.00 NAV target.
Has never broken the buck ($1.00 NAV) in its 45+ year history.
Tax Treatment
Dividends are taxable federally. A large majority of dividends derived from direct Treasury bills are exempt from state and local income taxes.
Who Should NOT Invest in Vanguard Federal Money Market?
Long-term investors seeking wealth accumulation or inflation-hedging capital appreciation.
About the Fund Manager
Managed by Vanguard Fixed Income Group's money market specialists Nafis T. Smith and Eion D'Anjou.
Who Is This Fund Suitable For?
Ideal for conservative investors seeking cash preservation, emergency savings, high liquid yield, and Vanguard settlement reserves.
More Funds from Vanguard & Similar Schemes
Similar Funds to Consider
- Fidelity Government Money Market Fund (SPAXX)
- Schwab Prime Advantage Money Fund (SWVXX)
- Fidelity Government Cash Reserves (FDRXX)
Or compare side by side using our main SIP calculator â you can test different funds with the same investment amount and dates to see which performed better.
Other Tools for Vanguard Federal Money Market Investors
- FIRE Calculator â Plan your retirement corpus with Vanguard Federal Money Market as part of your portfolio
- Cost of Delay Calculator â See how much delaying your SIP in Vanguard Federal Money Market could cost you
- SIP vs EMI Calculator â Compare investing in Vanguard Federal Money Market vs paying off loans
Frequently Asked Questions About Vanguard Federal Money Market
What is the historical SIP return of Vanguard Federal Money Market?
Based on the latest data, Vanguard Federal Money Market has delivered an annualized return (CAGR) of 0.0% over 3 years, 3.28% (Compound Yield) over 5 years, and 2.10% (Compound Yield) over 10 years. Has never broken the buck ($1.00 NAV) in its 45+ year history.
How is Vanguard Federal Money Market SIP return calculated?
SIP returns are calculated using the XIRR (Extended Internal Rate of Return) method. Each monthly installment buys units at the fund's Net Asset Value (NAV) on that specific day. When markets are down, your SIP buys more units, and when markets are up, it buys fewer units (rupee cost averaging). Our calculator replays this exact process using historical NAV data to compute the precise current value of your accumulated units.
How much return would $500 monthly SIP in Vanguard Federal Money Market generate over 5 years?
At an estimated annual return rate of 3.28%, a monthly $500 investment ($30,000 total invested) would grow to approximately $32,641 in 5 years, yielding an estimated wealth gain of $2,641. Use our interactive calculator above to test custom amounts with actual historical NAV data.
What are the top holdings in Vanguard Federal Money Market?
Vanguard Federal Money Market's top holdings include U.S. Treasury Bills & Notes (~60-70%), U.S. Government Agency Repurchase Agreements (~30-40%), Cash & Cash Equivalents (<1%), and others. The fund's sector allocation is U.S. Treasury Obligations 64.2%, Government Agency Repos 35.5%, Cash Equivalents 0.3%.
What is the risk profile of Vanguard Federal Money Market?
Near-zero NAV volatility with a stable $1.00 NAV target. This fund may not be suitable for long-term investors seeking wealth accumulation or inflation-hedging capital appreciation..
What are the tax implications of investing in Vanguard Federal Money Market?
Dividends are taxable federally. A large majority of dividends derived from direct Treasury bills are exempt from state and local income taxes.
Data last updated: September 2026 | Fund data sourced from SEC filings and public exchanges
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