Making your cash work harder
Cash can be more than just a placeholder. Managed well, it can offer stability, liquidity and flexibility.
Our money market funds offer a stable and low-risk option for investors to hold their savings, while aiming for a slightly higher return than cash. It can be a useful tool as part of a cash management strategy.
Like other investments, the value of money market funds, and the income from them, may fall or rise and investors may get back less than they invested.
Why invest in our money market funds?
Low risk
Typically more stable during volatile markets than other fixed income funds.
Low cost
With OCFs from just 0.07% (1) our money market funds offer more values to investors.
Stable
A liquid and low-risk option for investors to hold their savings over shorter time periods.
Diversified
Invests in a variety of short-term money market instruments issued by governments around the world.
(1) As at 31 December 2024. The Ongoing Charges Figure (OCF) covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees.
“In an uncertain market, cash can be a strategic tool. Money market funds offer competitive returns when managed appropriately, with capital preservation as a core aim. Our cash ETF is an effective way to deliver these outcomes for clients”
European Head of Bond Indexing, Vanguard Europe
Versatility for investors big and small
Money market funds are more than a place for just parking cash. They can serve multiple roles for different types of investors.
Individual investors: they offer accessibility and a steady yield, especially when interest rates are changing.
For asset allocators: they can act as a liquidity buffer, a transition asset or a risk-control layer within a broader portfolio.
They are not a replacement for fixed income allocations in portfolios. Investors should consider remaining fully invested in a long-term strategic asset mix.
Structure matters: LVNAV vs VNAV
Not all money market funds are structured the same way. The two most common types are:
- Low Volatility Net Asset Value (LVNAV) funds. These aim to maintain a constant share price fixed at €1.
- Variable Net Asset Value (VNAV) funds, These mark their NAVs to market daily and price shares to four decimal places.
Our money market funds are VNAV funds. This provides greater clarity on price movements, especially during periods of market stress.
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Browse our money market funds
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
An investment in a money market fund is not a guaranteed investment. An investment in a money market fund is different from an investment in deposits, as the amount invested in a money market fund is capable of fluctuation. Money market funds do not rely on external support for guaranteeing the liquidity of the money market fund or stabilising the Net Asset Value per share. The risk of loss of the amount invested shall be borne by the investor.
The Fund may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
For further information on risks please see the “Risk Factors” section of the prospectus.
Important information
For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website.
This is designed for use by, and is directed only at persons resident in the UK.
The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units, and the receipt of distribution from any investment.
The Authorised Corporate Director for Vanguard Investments Money Market Funds is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investments Money Market Funds.
Vanguard Funds plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor for Vanguard Funds plc.
The Indicative Net Asset Value (“iNAV”) for Vanguard’s ETFs is published on Bloomberg or Reuters. Refer to the Portfolio Holdings Policy.
The Manager of the Ireland domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time.
For investors in UK domiciled funds, a summary of investor rights is available in English.
For investors in Ireland domiciled funds, a summary of investor rights is available in English, German, French, Spanish, Dutch and Italian.