For the Vanguard personal brokerage, how do I check where exactly are my settlement funds are invested at any given moment ?
When I signed up for a Vanguard account, I read their documents and think I saw that Vanguard keeps our settlement funds mostly in US treasuries i.e. safe and no loss of principal (USA can't default on debt because we can always print more money to pay our debt). So, I guess Vanguard takes a small cut of the interest they get on treasuries etc and give us a small cut. Charles Schwab OTOH keeps the funds in "commercial paper" which pays more interest and is probably invested in highly risky entities now or will be slyly invested in those things in the future. That is why I chose vanguard over Charles Schwab, despite vanguard's crappy website.
When I signed up for a Vanguard account, I read their documents and think I saw that Vanguard keeps our settlement funds mostly in US treasuries i.e. safe and no loss of principal (USA can't default on debt because we can always print more money to pay our debt). So, I guess Vanguard takes a small cut of the interest they get on treasuries etc and give us a small cut. Charles Schwab OTOH keeps the funds in "commercial paper" which pays more interest and is probably invested in highly risky entities now or will be slyly invested in those things in the future. That is why I chose vanguard over Charles Schwab, despite vanguard's crappy website.
Statistics: Posted by broutside — Sat Sep 28, 2024 1:47 pm — Replies 7 — Views 494