o for Cash Reserves Federal Money Market Fund (formerly prime money market)
o for Federal Money Market FundFor the year ended August 31, 2021, Vanguard's expenses were reduced by $50,709,000 (an
annual effective rate of 0.06% of Investor Shares' and 0.03% of Admiral Shares' average net
assets); the fund is not obligated to repay this amount to Vanguard.
o for Treasury Money Market FundFor the year ended August 31, 2021, Vanguard's expenses were reduced by $49,701,000 (an
effective annual rate of 0.02% of the fund’s average net assets); the fund is not obligated to repay
this amount to Vanguard.
The amount in basis points relative to the funds' sizes is tiny, but the absolute dollar value is over $100 million. That seems like a lot of money that has to come from somewhere else in the Vanguard organization. And the expense subsidy also puts paid to the idea that Vanguard charges at cost for each fund. I'm not suggesting there's anything nefarious about this; just that the size of the expense subsidy seems remarkably large. And it's also an example of how keeping interest rates so low for so long makes weird things happen.For the year ended August 31, 2021, Vanguard's expenses were reduced by $5,204,000 (an
effective annual rate of 0.01% of the fund’s average net assets); the fund is not obligated to repay
this amount to Vanguard.