I'm planning on starting to sock away some money into a money market fund for use for an eventual home down payment.
When looking into what Vanguard has, I saw that they have a couple of state-specific ones (CA, NJ, NY, PA). I live in CA. The selling point appears to be that the state-specific ones give returns exempt from both federal and state taxes. I know that high returns aren't the goal of MMFs, but I figure every little bit helps. Is there anything I'm missing/any downsides I'm not considering to picking the state-specific one over one of the general ones? The CA one has the same expense ratio as the Prime Money Market Fund (0.16%).
Thanks to all in advance.
When looking into what Vanguard has, I saw that they have a couple of state-specific ones (CA, NJ, NY, PA). I live in CA. The selling point appears to be that the state-specific ones give returns exempt from both federal and state taxes. I know that high returns aren't the goal of MMFs, but I figure every little bit helps. Is there anything I'm missing/any downsides I'm not considering to picking the state-specific one over one of the general ones? The CA one has the same expense ratio as the Prime Money Market Fund (0.16%).
Thanks to all in advance.
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