Treasury money market funds closed

Vanguard has closed Vanguard Admiral Treasury Money Market Fund and Vanguard Treasury Money Market Fund to new accounts. The decision was made to protect the interests of current fund shareholders in an environment in which yields on short-term Treasury securities have reached historic lows.

Some employer-sponsored retirement plans offer the Treasury Money Market Fund as an investment option. Plan participants who invest in the fund will be notified by letter of any changes to the fund’s operation. If you have an employer- sponsored retirement plan with Vanguard, you can log on to your account or call Vanguard at 800-523-1188 to get a complete list of your plan's investment options.  

Money market investors across the industry have seen yields on their funds decline sharply in recent months. For example, the average yield among U.S. Treasury money market funds was only 0.15% as of December 31, 2008, down from 2.71% at the end of 2007 (source: Lipper Inc.). For a hypothetical investor with a $10,000 money market account, that's an annualized difference in income of $256.


  • All investments are subject to risks, which may result in the loss of principal.
  • The hypothetical example does not represent the return on any particular investment.
  • An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. Notwithstanding the preceding statements, the funds are participating in the U.S. Treasury's Temporary Guarantee Program for Money Market Funds. The Program generally does not guarantee any new investments in the funds made after September 19, 2008, and is scheduled to expire on April 30, 2009. For more information, please see a fund's most recent prospectus as supplemented on December 2, 2008.
  • U.S. government backing of Treasury securities applies only to the underlying securities and does not prevent share-price fluctuations.
  • Past performance is not a guarantee of future results.

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