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What about brokerages like Fidelity, Schwab, Vanguard, etc? Are holdings in money market funds/accounts in such typical brokerages protected / owned like a sec
by supernova87a 4y ago
What about brokerages like Fidelity, Schwab, Vanguard, etc?
Are holdings in money market funds/accounts in such typical brokerages protected / owned like a security? Or should one regard it also like cash, and not FDIC insured greater than $250,000? (but while also trusting those institutions are unlikely to fail or have risky policies)
- bradleyjg 4y agoMoney market funds are not guaranteed. Google “broke the buck.”
- arcticbull 4y agoThe value of the money market fund is not insured, no, but the failure of the brokerage is. That said regulations are significantly stronger now for MMFs than they were when pre-2008. I guess it depends on what you're trying to protect against exactly. [1] [1] https://www.sipc.org/for-investors/introduction https://www.sipc.org/for-investors/introduction
- arcticbull 4y agoMoney market funds are securities, and are covered by SIPC.