The VUSXX fund, officially known as the Vanguard Treasury Money Market Fund (VUSXX), is one of the most trusted cash-equivalent investment vehicles available in 2025. Built around the principles of capital preservation, liquidity, and U.S. government-backed security, VUSXX has grown in popularity among conservative investors, institutions, and retirement savers.
This guide will walk you through how the fund works, its historical and current performance, tax implications, and how it stacks up against similar low-risk instruments.
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What Is the VUSXX Fund?
Is VUSXX a mutual fund? Yes, VUSXX is a money market mutual fund managed by Vanguard. It primarily invests in:
- U.S. Treasury bills and notes
- Repurchase agreements (repos) fully backed by Treasury securities
Its objective is simple: to offer current income while maintaining a stable net asset value (NAV) of $1.00 per share. The fund is governed under SEC Rule 2a-7, ensuring strict liquidity, maturity, and credit quality standards.
VUSXX Fund Fact Sheet (2025)
| Attribute | Detail |
|---|---|
| Fund Name | Vanguard Treasury Money Market Fund |
| Ticker | VUSXX |
| Fund Type | Money Market Mutual Fund |
| NAV | $1.00 (stable) |
| Expense Ratio | 0.09% |
| Minimum Investment | $3,000 |
| 7-Day SEC Yield | 4.94% (as of May 2025) |
| Holdings | 100% U.S. Treasuries & repos |
| State Tax Status | Generally exempt from state income tax |
| Liquidity | Daily |
For official documents, you can view the VUSXX Fund Fact Sheet (Vanguard).
VUSXX Fund Performance 2025
As of mid-2025, the 7-day SEC yield is approximately 4.94%, placing it among the highest-yielding Treasury-only money market funds.
VUSXX does not aim for capital appreciation. Instead, its performance is defined by:
- Consistency of daily income
- Stability of NAV
- Tax efficiency (no capital gains or distributions to reinvest)
Yearly Average Yields:
| Year | 7-Day SEC Yield Avg | Notes |
| 2021 | 0.01% | Pandemic era low rates |
| 2022 | 1.35% | Fed tightening begins |
| 2023 | 4.32% | Major rate hikes take effect |
| 2024 | 4.85% | High-rate plateau |
| 2025 | 4.94% (as of May) | Continued Fed restraint |
Real-time rates can be verified on the Vanguard Money Market Yields page.
Why Investors Choose the Vanguard Treasury Money Market Fund (VUSXX)
- Stability: NAV remains fixed at $1.00/share
- Liquidity: Daily access to funds with no penalties
- Yield: Competitive with many CDs and high-yield savings accounts
- Safety: Only holds U.S. Treasuries and Treasury-collateralized repos
- Tax Advantage: Exempt from state income tax in most jurisdictions
For high-income investors in states like California, this exemption gives VUSXX an after-tax yield edge over other money market funds.
VUSXX vs Other Vanguard Options
| Feature | VUSXX | VMFXX | Settlement Fund (VMFXX alt) |
| Holdings | 100% Treasuries | Treasuries + Agency + Repos | Broad govt securities |
| State Tax Exempt | Yes | No | No |
| NAV Stability | $1.00 | $1.00 | $1.00 |
| 2025 Yield (est.) | 4.94% | 5.03% | 4.85% |
| Risk Level | Extremely Low | Very Low | Low |
More: https://vusxx.com/vusxx-vs-vmfxx/
Tax Considerations
Interest from VUSXX is federally taxable, but generally exempt from state and local income taxes. This is because the underlying securities are obligations of the U.S. government.
See IRS Topic 403 for details on interest from U.S. Treasury securities.
Who Should Use the VUSXX Fund?
- Retirees drawing monthly income
- Corporations managing cash reserves
- Taxable account holders in high-income tax states
- Anyone waiting to deploy capital in a risk-off environment
If your portfolio needs a conservative buffer with daily liquidity and tax-friendly income, VUSXX fits naturally.
Common Questions About VUSXX
Q: Is VUSXX a mutual fund or ETF?
A: It’s a mutual fund, not an ETF. You buy/sell once per day based on NAV.
Q: Does VUSXX lose value?
A: It aims to keep a stable $1.00 NAV. There is minimal risk of principal loss.
Q: Is there a VUSXX ETF equivalent?
A: Closest options include VGSH, BIL, and TFLO. Learn more: https://vusxx.com/vusxx-etf-equivalents/
Q: How often does it pay dividends?
A: Monthly, based on daily interest accrual. Details here: https://vusxx.com/vusxx-dividend/
Internal Resources on VUSXX
VUSXX vs VMFXX: Key Differences
For readers seeking a core overview of the Vanguard Treasury Money Market Fund, we recommend reviewing this in-depth article on Vanguard VUSXX.
Disclaimer
VUSXX.com is an independent educational resource. We are not affiliated with Vanguard. The content provided here is for informational purposes only and should not be considered investment advice. Always consult a licensed financial professional before making any investment decisions.
