Comprender las inversiones: Valor estable frente a mercados monetarios

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A continuación se presenta un cuadro con las principales diferencias entre las cuentas de valor estable, mercado monetario y Alerus Money Market.

FeaturesStable ValueMoney MarketAlerus Money Market
Underlying InvestmentsCan vary by fund. Most funds are similar to a diversified short-term bond portfolio with average maturity between 2 and 5 years.Short-term interest paying securities. Regulated so average maturity is under 60 days.Does not have underlying holdings. Alerus Money Market is a deposit account with Alerus Financial, N.A.
FeesFunds charge an expense ratio to manage underlying investments and pay for insurance from one or more financial institution.Funds charge an expense ratio to manage underlying investments.Alerus collects a “spread” between the interest rate paid on Money Market deposits and the interest rate or other income derived from loans and investments.
Trading RestrictionsFunds typically do not have restrictions at the participant level, however, many (but not all) funds require 12 months of advance notice before removal from the plan.U.S. Government Money Market funds have no restrictions. Prime Money Market funds can require up to 10 days’ notice prior to withdrawal and enforce fees up to 2%.Although there are not any immediate plans to do so, Alerus reserves the right to require 7 days’ notice prior to withdrawal from the Money Market.
Principal ProtectionFunds are required to have insurance from a single or multiple financial institutions to protect principal.U.S. Government Money Market funds normally invest at least 99.5% in cash, U.S. Government securities, and repurchase agreements to protect principal.FDIC deposit insurance covers the depositors of a failed FDIC-insured depository institution dollar-for-dollar, principal plus any interest accrued or due to the depositor, through the date of default, up to $250,000 per participant.
Competing Fund ClauseMoney Market and short-term bond funds typically cannot be held when a plan holds a Stable Value fund.No competing fund clause.No competing fund clause.