Understanding Cash Reserves Federal Money Market Admiral Fund

The Cash Reserves Federal Money Market Admiral Fund is a type of investment designed to provide a low-risk option for investors.

It invests in a pool of high-quality, short-term debt securities, such as commercial paper and treasury bills, which have a low risk of default.

These investments are typically held for a short period, usually less than a year, to minimize the risk of market fluctuations.

This fund is managed by Vanguard, a well-established and reputable investment management company.

The fund's goal is to provide a stable source of returns, without taking on too much risk, making it suitable for investors who want to preserve their capital.

It's worth noting that this fund is designed to be a low-cost option, with fees significantly lower than many other investment funds.

The VMRXX Vanguard Cash Reserves Federal Money Market Fund Admiral Shares is a solid choice for those looking to invest in a cash reserve fund.

This fund is designed to provide liquidity and preserve capital, making it a great option for short-term investments.

The fund's holdings are managed to maintain a high level of liquidity and meet the fund's investment objectives, which is to provide a return in line with the 7-day yield of the 3-month Treasury bill.

You can view the fund's holdings in the Holdings section of the article, which provides a detailed breakdown of the fund's investments.

The fund's fees and availability can also be found in the Fees & Availability section, which is essential for understanding the cost and accessibility of the fund.

Here is a quick summary of the fund's key features:

The fund's performance and risk can be viewed in the Performance & Risk section, which provides a detailed analysis of the fund's historical performance and risk metrics.

The fees and expenses associated with the Cash Reserves Federal Money Market Admiral can be broken down into a few key components.

The management fee is a 0.09% charge, which is deducted from the account balance.

One thing to note is that the admin fee is not applicable in this case, as it is listed as "–".

The load is also not applicable, as it is explicitly stated that there is no load.

Here is a summary of the fees and expenses in a table:

The Vanguard Cash Reserves Federal Money Market Fund Admiral Shares has a return of 0.00% year-to-date (YTD) and 4.79% in the last 12 months.

Over the past 10 years, this investment had an annualized return of 1.73%, which is lower than the S&P 500's annualized return of 11.26%. This indicates that it didn't perform as well as the benchmark.

The Sharpe ratio, a measure of risk-adjusted returns, is 3.45, indicating that the investment's historical performance is relatively high compared to the selected benchmark.

The performance chart is a great way to visualize how an investment is doing over time. It shows the growth of an initial investment of $10,000 in Vanguard Cash Reserves Federal Money Market Fund Admiral Shares, comparing it to a benchmark like the S&P 500.

The chart has been adjusted for splits and dividends, which means the numbers are accurate and easy to compare. This investment started with a $10,000 initial investment.

Looking at the chart, we can see how this investment has performed over time. The returns are calculated from the initial investment of $10,000.

The chart shows the growth of the investment, but it's also important to look at the returns. Vanguard Cash Reserves Federal Money Market Fund Admiral Shares had a return of 0.00% year-to-date (YTD) and 4.79% in the last 12 months.

It's worth noting that this investment did not perform as well as the benchmark over the past 10 years. The annualized return of Vanguard Cash Reserves Federal Money Market Fund Admiral Shares was 1.73%, while the S&P 500 had an annualized return of 11.26%.

The Sharpe ratio is a key metric to evaluate an investment's performance, and it's essential to understand what it means. It's a risk-adjusted measure that takes into account the investment's returns and volatility.

The current Sharpe ratio for Vanguard Cash Reserves Federal Money Market Fund Admiral Shares is 3.45, based on the past year of trading data.

This value provides insights into the investment's historical performance in terms of risk-adjusted returns, and it's a good way to compare the investment to a benchmark. The benchmark, represented by the S&P 500 (^GSPC), has a Sharpe ratio of 3.96.

The Sharpe ratio can be a useful tool in evaluating investment performance, but it's just one piece of the puzzle. It's essential to consider other metrics, such as returns by period, to get a comprehensive view of an investment's performance.

Risk Management is crucial for any investment, and Vanguard Cash Reserves Federal Money Market Fund Admiral Shares (VMRXX) is no exception.

The fund's risk-adjusted performance metrics are presented in charts that compare its returns to those of a chosen benchmark, ^GSPC. This helps investors evaluate the fund's performance in relation to its associated risks.

Understanding these metrics is essential for making informed investment decisions, as it allows you to assess the potential risks and rewards of investing in VMRXX.

Risk-Adjusted Performance Indicators are crucial for evaluating an investment's returns against its associated risks. This helps investors make informed decisions and avoid potential losses.

Risk-adjusted performance metrics can be presented in charts, such as those for Vanguard Cash Reserves Federal Money Market Fund Admiral Shares (VMRXX), which compare returns to a chosen benchmark like the S&P 500 (^GSPC). These charts provide a visual representation of an investment's performance relative to its associated risks.

Investors should look for risk-adjusted performance metrics when evaluating investments, as they offer a more comprehensive view of an investment's performance.

Understanding the concept of worst drawdowns is crucial for effective risk management. A worst drawdown is a measure of risk that indicates the largest reduction in portfolio value due to a series of losing trades.

The Vanguard Cash Reserves Federal Money Market Fund Admiral Shares has experienced significant drawdowns in the past. The fund's maximum drawdown is a notable concern for investors.

A maximum drawdown is the largest reduction in portfolio value, and it's essential to understand this metric to assess risk. The portfolio has not yet recovered from its previous drawdowns.

Investors should closely monitor their portfolios to identify potential drawdowns early on. This can help mitigate losses and make informed decisions.