Money is continuing to flow into money-market funds, with total assets climbing to a record high amid renewed stock market volatility and geopolitical concerns.
As of the week ending Wednesday, April 2, money-market fund assets reached $7.03 trillion, up from $7.01 trillion the previous week, according to data from the Investment Company Institute (ICI).
This trend reflects a clear investor preference for safety and yield. With average yields at 4.15%—per the Crane 100 Money Fund Index—money-market funds are offering compelling returns relative to the current risk environment.
Retail clients are fueling the latest growth. ICI reports that retail money-market fund assets grew by $17.7 billion in the past week, even as institutional assets declined by $101 million. The shift underscores a growing conservatism among individual investors responding to market noise and uncertainty.
Money-market funds invest primarily in highly liquid, short-term debt instruments like U.S. Treasury bills. Their combination of stability, liquidity, and yield continues to appeal to clients wary of equity market swings.
According to ICI Chief Economist Shelly Antoniewicz, the persistent inflows reflect heightened sensitivity to market volatility. That volatility intensified after President Donald Trump announced significant new tariffs—an announcement that triggered a 4.8% drop in the S&P 500 on Thursday, marking the index’s steepest decline since 2020.
Since July 2024, money-market funds have added nearly $1 trillion in assets, rising from $6.1 trillion to their current level. For wealth advisors and RIAs, this sustained surge underscores the importance of cash and cash equivalents in client portfolios—not just as a yield-generating vehicle, but as a tactical asset class during periods of market stress.
