Money Market funds are a type of mutual fund that invests in highly liquid, short term securities with minimal credit risk and low volatility. The Investments can include short-term U.S. Treasury securities, federal agency notes, repurchase agreements, certificates of deposit, corporate commercial paper, and obligations of states, cities, or other types of municipal agencies - depending on the focus of the fund.

Many investors use money market funds to store cash or as a less volatile alternative to investing in the stock market.

Frec currently offers the following seven (7) money market funds with the goal to offer additional mutual funds in 2023.

All of the above are government and retail money market funds, which try to keep their net asset value (NAV) at a stable $1.00 per share using special pricing and valuation conventions. The NAV of a mutual fund is the fund’s total assets minus its total liabilities.

You should consider the investment objectives, risks, charges, and expenses of the above funds carefully before investing. You can find such information in the funds' prospectus available when you click on the links above. Each fund's prospectus should be read carefully before investing.

Read more about Money Market Funds on the SEC’s website.

You can enter a money market trade order at any time during normal market hours between 9:30 am - 4:00 pm ET. The order will then execute after 4pm ET. Most money market fund shares settle one business day after the trade date.

You can place your order in the “Trade” tab by entering the symbol of the money market fund you would like to trade in the box under the title, “Symbol.” You can find the symbols for each of the seven money market funds listed in the table above. You can then select whether you want to buy or sell shares of the money market fund and the trade will automatically default to a market order under “Order type.” You can then select the amount of shares you would like to purchase as a notional or share order.

Money market funds only trade as market orders, meaning they execute at the NAV at market close. You will be unable to place limit orders for any money market shares. Additionally, any money market fund order will not be executed until after the market closes at 4:00 pm ET.

Please keep in mind if you want to place a notional or dollar amount order, you must place a trade in an amount that will fill an order for whole shares only. You cannot place an order for a dollar amount if the order will amount to a fractional share order. If you attempt to place a notional order that will amount to a fractional share order, a notification will be shown blocking your ability to place the trade until you adjust the amount to whole shares only.

For example, if a money market fund is valued at $1.00 NAV and you attempt to place an order for $30.50 notional value, you will be blocked from placing the order because you are attempting to trade 30.5 shares of the money market fund. You will be required to adjust the amount until you are placing an order of whole shares.

If you want to place a trade order in shares, you will be restricted to place the order in whole share amounts. You will be unable to place a trade in a fractional share amount.

There is a possibility that a money market fund’s NAV fluctuates below or above its NAV value and your order will fill according to the NAV calculated after 4:00 pm ET. Your trade order confirmation and the Activity tab will provide the exact price your money market fund order is filled. You can locate your trade order confirmation document inside the Frec platform by clicking on your name in the upper right corner and selecting “Account settings” then clicking on the tab titled, “Documents.” You can view all of your trade activity by clicking on the “Activity” tab at the top of Frec’s platform.

Total Net Assets is available to see for each of the money market funds in the “Trade” tab. A fund’s Total Net Assets are the total dollar amount value of the assets held in the mutual fund.

The 7-day SEC yield is calculated by annualizing the funds daily income distributions for the previous 7 days, assuming the rate stays the same for one year and that dividends are reinvested. It is the Fund’s total income minus expenses, divided by the total number of outstanding shares and includes any applicable waiver or reimbursement. The higher the yield the higher the distribution income on the money market fund.

The expense ratio is expressed as a percentage and represents fees charged to you as an investor to cover the fund’s operating costs on an annual basis. This fee is automatically deducted from dividend and capital gains distributions and included in the money market fund’s daily Net Asset Value (NAV). The lower an expense ratio, the higher your returns on the money market fund.

You can calculate the dollar amount of the expense ratio by multiplying the expense ratio by the dollar amount of your investment. For example, if a money market fund has an expense ratio of .25% and you own $1,000 worth of shares, you will pay $2.50 each year to the manager of the fund.

The Money Market Fund’s Inception Date is the date the money market fund was first available to investors.

The minimum investment amount is the minimum amount you are permitted to invest for your initial investment of that money market fund. For example, if the minimum investment is $300, you will be required to enter a buy order of at least $300 or more for your first trade of that money market fund.

These minimum amounts are typically set by a fund as a means to keep small, short-term trades from affecting cash flows and the fund’s daily management.

The Money Market Fund’s Dividend Schedule is how often the money market fund pays its investors. Money market fund dividends are declared daily and typically paid monthly. Dividends earned in a particular month generally are paid on the first business day of the following month.

Money market funds generally do not pay capital gain distributions. Keep in mind a fund may not declare or pay a scheduled dividend.

Money market funds are subject to three main risks: interest rate risk, liquidity risk, and credit risk.

You could lose money by investing in the fund's above. Although the funds seek to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds' sponsors have no legal obligation to provide financial support to the funds, and you should not expect that the sponsors will at any time.

Additionally, the Vanguard Municipal Money Market Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors.

Despite the above risks, money market funds are relatively low risk compared to other mutual funds and most other investments. See SEC’s Money Market Fund description.