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No. of Recommendations: 5
VG Prime MM fund, VMMXX (cash), is paying ~2.37% monthly. As a money market, price is held at $1, so you would avoid gain/loss from price movement of BND... but at the lower yield of MM.

I think depending on age & risk tolerance, price movement may be of lesser concern when looking long term.

Here's what MM paid in div/shr for last 18 months.

https://investor.vanguard.com/mutual-funds/profile/distribut...

here's BND dist:

https://investor.vanguard.com/etf/profile/distributions/bnd

For Dec 2018 distr. difference on $10,000 between the 2 holdings was less than $5 (rnd $4.86)
If you went back to the 7/2017 prices & distr., BND yielded about twice as much as MM (~$20.74-$9.30). Figures roughly right for dates, I think :)

Note VG site shows BND at ~ 3.2% yield. It has had ST and/or LT gains in their distributions over the last 5 years (2014) if a concern in taxable account.

For this market right now I'm more comfortable holding cash in MM/Savings at the lower yield and waiting for larger correction. But that's MY age & risk tolerance.
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