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forum thread Posted by duke5150 • Feb 4, 2025
forum thread Posted by duke5150 • Feb 4, 2025

Vanguard lowered internal maintenance fees for VUSXX from 0.09% to 0.07%

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Vanguard lowered internal maintenance fees for VUSXX from 0.09% to 0.07%

https://investor.vanguard.com/inv...file/vusxx
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Vanguard lowered internal maintenance fees for VUSXX from 0.09% to 0.07%

https://investor.vanguard.com/inv...file/vusxx

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11 Comments

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Feb 4, 2025
43 Posts
Joined Nov 2019
Feb 4, 2025
MyOtherCarIsATruck
Feb 4, 2025
43 Posts
This fund has been closed to new investors since 2020.
Feb 4, 2025
419 Posts
Joined Jun 2019
Feb 4, 2025
CleverChicken951
Feb 4, 2025
419 Posts
Quote from MyOtherCarIsATruck :
This fund has been closed to new investors since 2020.
Instead it requires minimum initial investment of $3000
Feb 4, 2025
1,481 Posts
Joined Mar 2006
Feb 4, 2025
bluskye
Feb 4, 2025
1,481 Posts
Quote from CleverChicken951 :
Instead it requires minimum initial investment of $3000
GABXX has $1k initial. May swap out to Vanugard's VUSXX
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Feb 4, 2025
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Feb 4, 2025
E4300
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Feb 4, 2025
2,611 Posts
SGOV's 0.09% expense requires about $100.34 per share to engage. SGOV's price goes up about one penny per trading day. Approximately $0.35 dividend is paid out at the end of the month. One can sell SGOV on ex-dividend date to capture short term capital gain, which can be used to offset capital loss.

One can sell SGOV during market hours to free up cash to buy securities. Mutual fund sale of VUSXX takes one day to clear.
Last edited by E4300 February 4, 2025 at 10:20 AM.
Feb 4, 2025
419 Posts
Joined Jun 2019
Feb 4, 2025
CleverChicken951
Feb 4, 2025
419 Posts
Quote from E4300 :
SGOV's 0.09% expense requires about $100.34 per share to engage. SGOV's price goes up about one penny per trading day. Approximately $0.35 dividend is paid out at the end of the month. One can sell SGOV on ex-dividend date to capture short term capital gain, which can be used to offset capital loss.

One can sell SGOV during market hours to free up cash to buy securities. Mutual fund sale of VUSXX takes one day to clear.
Wonder if we could compare returns/yield of SGOV, VMFXX, VUSXX on a graph over the last 12 months?

Is it good idea to keep emergency funds in SGOV?
Any comments on BOXX, although it has much higher expense ratio ?
Last edited by CleverChicken951 February 4, 2025 at 10:50 AM.
Feb 4, 2025
1,481 Posts
Joined Mar 2006
Feb 4, 2025
bluskye
Feb 4, 2025
1,481 Posts
Quote from E4300 :
SGOV's 0.09% expense requires about $100.34 per share to engage. SGOV's price goes up about one penny per trading day. Approximately $0.35 dividend is paid out at the end of the month. One can sell SGOV on ex-dividend date to capture short term capital gain, which can be used to offset capital loss.

One can sell SGOV during market hours to free up cash to buy securities. Mutual fund sale of VUSXX takes one day to clear.
Not sure what you talking about, any securities sold off, the funds will settle in your cash bucket following day. T+1 rule. It used to be 3 days. There is no replacement to having cash ready on-hand.
Pro
Feb 4, 2025
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Feb 4, 2025
E4300
Pro
Feb 4, 2025
2,611 Posts
Quote from bluskye :
Not sure what you talking about, any securities sold off, the funds will settle in your cash bucket following day. T+1 rule. It used to be 3 days. There is no replacement to having cash ready on-hand.
If you sell $100 VUSXX during market hours today, that $100 is not available for investment until the next day (T+1). Selling one share of SGOV during market hours will free up approximately $100 in buying power to buy stock, instantly. The cash proceed from SGOV is available the next day (T-1). Fidelity's core money market or FDLXX also provides real time buying power.

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Feb 4, 2025
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Joined Sep 2008
Feb 4, 2025
DogAndPony
Feb 4, 2025
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In for 100
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Feb 4, 2025
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Joined Sep 2011
Feb 4, 2025
E4300
Pro
Feb 4, 2025
2,611 Posts
Quote from CleverChicken951 :
Wonder if we could compare returns/yield of SGOV, VMFXX, VUSXX on a graph over the last 12 months?

Is it good idea to keep emergency funds in SGOV?
Any comments on BOXX, although it has much higher expense ratio ?
Yield on SGOV mirrors 1-3 months t-bills, minus 0.09% expense. $0.363396 dividend will be paid on 2/6 to cover the last 30 days. That translates to $4.42 annual dividend at a cost of $100.34/share or 4.4%. I would expect the yield to fall to 4.25% as older t-bills mature.

The main advantage of SGOV is instant buying power during trading hours.
I also buy SGOV in real time with the proceed of stock sale. No need to wait for T+1 to buy into a money market fund.

The main disadvantage of SGOV is the SEC fee when selling SGOV to free up buying power.
Feb 4, 2025
1,441 Posts
Joined Jan 2006
Feb 4, 2025
whodiini
Feb 4, 2025
1,441 Posts
Quote from E4300 :
If you sell $100 VUSXX during market hours today, that $100 is not available for investment until the next day (T+1). Selling one share of SGOV during market hours will free up approximately $100 in buying power to buy stock, instantly. The cash proceed from SGOV is available the next day (T-1). Fidelity's core money market or FDLXX also provides real time buying power.
It depends on which brokerage you hold these in. If you hold in Vanguard brokerage, you can use the buying power real time. If you hold in a Fidelity brokerage, you are correct, it takes one day. Likewise if have FDLXX in a fidelitty brokerage, you can use the buying power real time. If you have FDLXX in a Vanguard brokerage, it takes one day.
Feb 5, 2025
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Joined Jan 2006
Feb 5, 2025
whodiini
Feb 5, 2025
1,441 Posts
apples to apples comparison:
FDLXX: 3.98 % .42% expense no min
VUSXX: 4.26% .07% expense $3k min
SNSXX 4.03% .34% expense no min
SGOV 4.28% .093% expense (including SEC fee) no min

These are all treasury mmkt or very short term, so mostly no state tax on earnings. (accurate statement to around 95%
-100% state tax free)
Seems that if you have a vangaurd brokerage acct, you should use VUSXX. All others use SGOV.

For perspective, a .25% difference on $100k is $250/year.
Last edited by whodiini February 4, 2025 at 05:54 PM.

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