NEW YORK ( TheStreet) -- The Federal Reserve recently announced its plans to keep short-term interest rates near zero for the next two years. That was bad news for shareholders of money market funds who will continue to receive tiny yields. To get better results, many investors should consider shifting some cash from money- market funds to ultra-short bond funds.Of the money-market funds tracked by Crane Data, the highest-yielding choice today is Schwab Cash Reserves (SWSXX), which yields a puny 0.06%. You can do better with an ultra-short fund, such as Wells Fargo Advantage Adjustable Rate Government (EKIZX), which yields 2.27%. Make no mistake, the ultra-short funds come with more risk. But at a time when the Fed is holding down rates, the odds are high that top ultra-short funds will stay in the black for the next several years.
Ultra-Short Bonds Beating Money Markets
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