Vanguard Treasury Money Market Fund (VUSXX) Questions!

Discussion of the Cash portion of the Permanent Portfolio

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vnatale
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Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by vnatale » Wed Dec 11, 2019 9:45 pm

I'm trying to do my due diligence research on Vanguard Treasury Money Market Fund (VUSXX).

I start here:

https://investor.vanguard.com/mutual-fu ... file/VUSXX

Under "Product Summary" I read: "Vanguard Treasury Money Market Fund, which invests in U.S. Treasury securities, seeks to provide current income and preserve shareholders’ principal investment by maintaining a share price of $1. As such it is considered one of the most conservative investment options offered by Vanguard. Although the fund invests in short-term U.S. Treasury bills,....:

So far, so good.

But when I go down the page for "Portfolio composition" I see:

U.S. Govt. Obligations 9.2%
U.S. Treasury Bills 90.8%

How does THAT conform with the above..."the fund invests in short-term U.S. Treasury bills"?

Is the above saying that BOTH Govt. Obligations and Treasury Bills comprise the fund's "U.S. Treasury securities" investment? And, the "fund invests in short-term U.S. Treasury bills" is just describing PART of the fund's "U.S. Treasury securities" investment?

To try to further understand this, I click on "View prospectus and reports" (Just under the "Product summary")

I was quite happy to see it bring me to this link: Annual Report 08/31/2019. However, each time I click on it using either the Edge or Chrome browser is brings me to the Vanguard home page (https://investor.vanguard.com/home/).

Anyone have any answers to my above concerns? And, can any of you get to that annual report?

Thanks

Vinny
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by thisisallen » Wed Dec 11, 2019 10:15 pm

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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by vnatale » Thu Dec 12, 2019 8:04 pm

Many thanks for this!

1. How did you find it? I.e., what path did you take to get there?

2. Is this a prime example of what we were taught in school as "Window Dressing" (from page 28)?
Capture.JPG
Capture.JPG (20.35 KiB) Viewed 2523 times
For the period in which they report they do own 100% U.S. Treasury Bills. However, just below it states that it may own issues that are "generally not backed by the full faith and credit of the U.S. government.

Can there be any conclusion other than this fund does not offer the same degree of safety as directly owning only Treasury Bills?
"I only regret that I have but one lap to give to my cats."
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by Kriegsspiel » Sat Dec 14, 2019 7:02 am

vnatale wrote:
Thu Dec 12, 2019 8:04 pm
Can there be any conclusion other than this fund does not offer the same degree of safety as directly owning only Treasury Bills?
No, I don't think so. The advantage funds have over direct Treasury ownership is convenience, not safety (since there is an extra layer between you and the asset you want to own) or composition (since, if it were up to you, you'd just own the Treasuries). The Vanguard funds are covered under SIPC, but again, that's an extra layer between you and the assets you want that you deal with just due to the convenience of Vanguard managing your money for you.
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by mathjak107 » Sat Dec 14, 2019 7:50 am

again , just to reiterate , if you own your funds through a mutual fund account and not a brokerage account there is no sipc coverage involved .

only things owned through a brokerage account are covered . a vanguard mutual fund account would not get sipc coverage
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by Kriegsspiel » Sat Dec 14, 2019 8:16 am

mathjak107 wrote:
Sat Dec 14, 2019 7:50 am
again , just to reiterate , if you own your funds through a mutual fund account and not a brokerage account there is no sipc coverage involved .

only things owned through a brokerage account are covered . a vanguard mutual fund account would not get sipc coverage
Ah. So you would have to own it in the ETF form for it to be covered?
I hated all the things I had toiled for under the sun, because I must leave them to the one who comes after me. Who knows whether that person will be wise or foolish? Yet they will have control over all the fruit of my toil into which I have poured my effort and skill under the sun. . . Nothing is better for a man than to eat and drink and enjoy his work.
- Ecclesiastes
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by mathjak107 » Sat Dec 14, 2019 8:22 am

you can own mutual funds in your brokerage account . remember brokerage accounts have holdings held in street name by the brokerage . so sipc is needed .. mutual fund accounts are different . they have you as the registered owner ... so you can own mutual funds through brokerage accounts but because now the brokerage is a middleman you get the sipc coverage. the mutual fund itself is a separate company so it is not effected by the brokerage going belly up . a new parent company takes over the fund and done .

the brokerage account is much more complex because they actually are holding the fund but not in your name so to speak
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by pugchief » Sat Dec 14, 2019 9:14 am

mathjak107 wrote:
Sat Dec 14, 2019 7:50 am
only things owned through a brokerage account are covered . a vanguard mutual fund account would not get sipc coverage
The way I understand it, the funds are a separate entity from Vanguard, so if Vanguard went down, the fund would be immune, even if held in a mutual fund account. Is that not correct?
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by mathjak107 » Sat Dec 14, 2019 10:20 am

pugchief wrote:
Sat Dec 14, 2019 9:14 am
mathjak107 wrote:
Sat Dec 14, 2019 7:50 am
only things owned through a brokerage account are covered . a vanguard mutual fund account would not get sipc coverage
The way I understand it, the funds are a separate entity from Vanguard, so if Vanguard went down, the fund would be immune, even if held in a mutual fund account. Is that not correct?
yes they are separate when you have a fund account so no sipc is needed . but if you held that mutual fund through the brokerage account it is held in street name so sipc is needed because it is not segregated from vanguard itself like the fund is without the middleman registered to you
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by thisisallen » Sat Dec 14, 2019 4:26 pm

vnatale wrote:
Thu Dec 12, 2019 8:04 pm
Many thanks for this!

1. How did you find it? I.e., what path did you take to get there?]


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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by fireplan » Mon Jan 06, 2020 10:29 am

vnatale wrote:
Wed Dec 11, 2019 9:45 pm
I'm trying to do my due diligence research on Vanguard Treasury Money Market Fund (VUSXX).

But when I go down the page for "Portfolio composition" I see:

U.S. Govt. Obligations 9.2%
U.S. Treasury Bills 90.8%
I'm pretty sure that earlier this year, it was nearly 100% T-Bills, but I just took a look on vanguard and the composition has changed again for the worse:

as of 12/31/2019
U.S. Govt. Obligations 15.6%
U.S. Treasury Bills 84.4%
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Re: Vanguard Treasury Money Market Fund (VUSXX) Questions!

Post by mukramesh » Mon Jan 06, 2020 10:59 am

Thanks for the info mathjak107! I never knew about this.
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