This post is by Dorothy Neufeld from Visual Capitalist


Published on
The following content is sponsored by New York Life Investments
This graphic shows the record growth of assets in money market funds.

Visualizing the Record $6 Trillion in Cash on the Sidelines

Investors have stockpiled a record $6.1 trillion in money market funds due to the sharp rise in interest rates driving up higher yields over the last few years. These low-risk, highly liquid investments serve as an alternative to cash, investing in assets like Treasuries. Since the end of 2019, their total assets have increased by over 50%. This graphic, sponsored by New York Life Investments, shows the wall of cash on the sidelines.

The Growth in Money Market Funds

In 2023, investors increasingly began piling into money market funds, with assets growing by $900 billion in the first three quarters alone.

Often, investors put their cash in money market funds when they are waiting to invest it or they need the money in the short term. The benefit of these funds is that they can offer higher yields than holding cash in a bank account, which helps offset the impact of inflation.
DateMoney Market Fund Total Financial Assets
2023$6.1T
2022$5.2T
2021$5.2T
2020$4.8T
2019$4.0T
2018$3.3T
2017$3.0T
2016$2.9T
2015$3.0T
2014$3.0T
2013$3.0T
2012$2.9T
2011$3.0T
2010$3.0T
2009$3.8T
2008$3.4T
2007$2.4T
2006$2.0T
2005$1.9T
2004$2.0T
2003$2.2T
2002 (Read more…)