Your money-market fund statement may show a balance with a few more digits.
When you next check your balance, you may see a lot more digits. Fidelity, Schwab, and other firms managing 40% of U.S. money fund assets said in January they would disclose the exact per-share value of their funds' holdings daily, in place of reports they've issued monthly since 2010.
Don't be confused: Shares you trade will still be priced at the standard net asset value (NAV) of $1 apiece.
So why the new detail?
The firms are responding to proposals aimed at protecting investors from a repeat of 2008, when one fund's NAV hit 97¢.
One such idea (which stalled at the SEC last year) is to have funds trade at a floating NAV like other mutual funds.
Wall Street hopes the daily disclosure will reassure people that values stay very close to $1. As low as the funds' risk may be nowadays, though, it may not be offset by their reward: an average yield of just 0.05%.
|Fund||Net Asset Value (NAV)|
|Fidelity Government Money Market (SPAXX)||$1.0001|
|Fidelity Tax-Free Money Market (FMOXX)||1.0005|
|Fidelity AMT Tax-Free Money (FIMXX)||1.0016|
|Don't fight it. Bitcoin has a bright future|
|Teen millionaire helping Yahoo become cool again|
|"The Hobbit" dispute sparks lawsuit|
|Five things you didn't know about Bernie Madoff's epic scam|
|Stocks falter as budget deal raises taper risk|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.45%||4.52%|
|15 yr fixed||3.47%||3.55%|
|30 yr refi||4.44%||4.51%|
|15 yr refi||3.46%||3.54%|
Today's featured rates: