Compare Vanguard & Fidelity Money Market Funds, T-Bills, and ETFs – Interactive Yield Analysis Spreadsheet

In this analysis, we compare Vanguard and Fidelity money market funds, T-bills, and ETFs, focusing on the latest yield data and features available in the Money Market Optimizer Toolkit. The toolkit, specifically version 15.1, has undergone various updates aimed at enhancing user experience and analytical capabilities.

Version 15.1 introduces significant changes, including the ability to analyze two groups of six funds, allowing users to customize their primary group with a "telltale" reference point, which defaults to the Vanguard fund VUSXX. Users can select any available fund as their primary reference, providing flexibility in their analysis. This version primarily serves as a cosmetic update, addressing several minor issues reported by users, and aims to improve the overall functionality of the tool.

The previous version, 14, marked a substantial overhaul, particularly in backend processing of EDGAR data, enhancing tax analysis and streamlining the reporting structure. Notably, it removed reliance on the moneymarket.fun data source, which had become unreliable. This update also eliminated the manual overrides for USGO% calculations, as the tool now utilizes improved historical data for more accurate assessments. The removal of the "Best Fund" returns graphic was a key change, as it aimed to avoid presenting potentially misleading data regarding after-tax returns.

In terms of new features, version 14 introduced an enable/disable function in the MySummary tab, allowing users to tailor which funds and features to activate, thereby optimizing performance. The toolkit now supports detailed analysis of actual USGO/Muni% and 50% rule results, utilizing data from EDGAR dating back to January 1, 2020. This enhancement means that yields and returns calculated on an after-tax basis are now more reflective of current tax situations.

The BestNow tab has been updated to reflect 1-day yields if all funds in the configured list report such data, aligning its functionality with that of the Fidelity tab from earlier versions. Additionally, a dedicated Vanguard-specific tab, VgBestNow, has been introduced, seeking feedback on its effectiveness as a combined strategy.

A major reworking of the EDGAR History tab has been implemented to provide users with deeper insights and historical trends, including the migration of asset types over time. The EDGAR Filter Sort feature has also been added, which reviews current EDGAR report summaries for all funds tracked by the optimizer tool.

The toolkit emphasizes the importance of tax considerations in money market fund analysis, as tax treatment significantly impacts returns. Users are encouraged to make a personal copy of the sheet to configure their specific tax situations, including state parameters and marginal tax rates. The MySummary tab consolidates all user-configurable parameters, facilitating personalized analysis.

For those in states like California, New York, and Connecticut, caution is advised regarding the EDGAR percentages, as the reports may apply state tax advantages that do not hold in final analyses. The EDGAR History tab provides critical insights into whether sufficient data is available for complete calculations, and it details the fiscal year quarters relevant to the funds under review.

The toolkit also features a daily update mechanism for the BestNow and Optimize tabs, ensuring that users receive the most current data without manual intervention. Users can configure which funds, ETFs, and T-bills they wish to include in their daily email updates, streamlining their investment tracking process.