Vanguard Short-Term Treasury Fund (VFISX)

This fund primarily invests in U.S. government debt, dedicating at least 80% of its assets to Treasury bills, notes, or bonds (including inflation-protected securities). It may also include debt issued by federal agencies that are sponsored, guaranteed, or owned by the federal government. A notable risk is that changes in interest rates could eventually diminish the fund's income. Although these short-term bond funds typically offer higher yields than money market funds, their share price, unlike money markets, is subject to fluctuation. This fund could be suitable for investors with short-term savings objectives who are prepared to accept some level of price volatility.