Money market funds are a safe and liquid investment option, ideal for investors seeking stability and easy access to cash. In this guide, we highlight the best-performing money market funds in 2025, helping you make secure investment decisions.
Explore the top-performing money market funds in 2025 that offer high liquidity, low risk, and steady returns for US investors.
Why Invest in Money Market Funds in 2025?
Money market funds (MMFs) are a great way to preserve capital while earning higher returns than a traditional savings account. These funds invest in short-term, high-quality debt instruments, offering a balance of security, liquidity, and competitive yields.
Top Money Market Funds for 2025
1️⃣ Vanguard Federal Money Market Fund (VMFXX) – Best for Stability
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Expense Ratio: 0.11%
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7-Day Yield: 5.05%
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Ideal for: Investors seeking a government-backed, ultra-safe investment.
2️⃣ Fidelity Government Money Market Fund (SPAXX) – Best for Liquidity
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Expense Ratio: 0.42%
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7-Day Yield: 4.98%
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Focus: Treasury securities and government-backed debt
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Ideal for: Investors who want quick access to cash with minimal risk.
3️⃣ Schwab Value Advantage Money Fund (SWVXX) – Best for High Yields
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Expense Ratio: 0.34%
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7-Day Yield: 5.10%
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Focus: Short-term, high-quality investments
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Ideal for: Investors looking for a high-yielding yet stable cash alternative.
4️⃣ T. Rowe Price Prime Reserve Fund (PRRXX) – Best for Institutional Investors
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Expense Ratio: 0.33%
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7-Day Yield: 5.02%
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Focus: Commercial paper, certificates of deposit, and Treasury securities
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Ideal for: High-net-worth individuals and businesses managing cash reserves.
5️⃣ JPMorgan Prime Money Market Fund (VMVXX) – Best for Corporate Investors
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Expense Ratio: 0.35%
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7-Day Yield: 5.08%
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Focus: Corporate and government securities
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Ideal for: Investors looking for higher yields with minimal risk.
How to Choose the Right Money Market Fund?
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Yield – Compare 7-day yields to maximize your returns.
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Expense Ratio – Lower fees ensure higher net returns.
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Risk Profile – Government MMFs are ultra-safe, while prime MMFs offer slightly higher yields.
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Liquidity – Choose funds that provide quick access to cash without penalties.
Final Thoughts: Are Money Market Funds a Good Investment in 2025?
Money market funds remain one of the best low-risk investment options for preserving capital and earning competitive yields. Whether you’re saving for short-term goals, managing business cash reserves, or parking funds before investing, MMFs provide stability and liquidity.
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Pro Tip: Consider funds with low fees and strong historical returns to maximize your earnings!
