Investors can't get enough of money market funds these days thanks to their attractive yields, which are north of 5%. In fact, some $960.2 billion flowed into money market funds so far this year, compared to just $164.6 billion into fixed income exchange-traded funds and $225.7 billion into equity ETFs, according to Strategas. Yet while the assets may be a great place to hold cash, you might want to consider looking elsewhere for longer-term income. "The yields are really ephemeral.
The annualized 7-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.19%. Money market funds can also be more convenient than other income-yielding plays, since they are also offered by banks and credit unions, said certified financial planner Barry Glassman, president of Glassman Wealth Services. However unlike bank savings accounts, money market funds are not insured by the Federal Deposit Insurance Corporation.