Money market funds

Screening Filters

1. Market Cap ≥ $1,000,000,000 (Large issuers)

   • Purpose: Focus on larger, more established entities.
   • Rationale:
     Money market funds themselves are typically mutual funds, not stocks. To approximate “money‑market‑like” characteristics using listed securities, it makes sense to restrict to large, financially solid issuers. Large-cap companies (or sponsors of ETFs/funds listed as stocks) are more likely to offer stable, low‑risk, short‑term instruments or cash‑equivalent products. This aligns with the safety and stability profile that people usually seek in money market funds.

2. Beta: LowRisk or NegativeBeta

   • Purpose: Minimize sensitivity to overall stock market movements.
   • Rationale:
     True money market funds aim for very low volatility and very low correlation with the equity market (beta near zero). By screening only for “LowRisk” or “NegativeBeta” securities, the screener is trying to capture listed instruments that behave more like cash or short‑term fixed income, rather than typical equities. This strongly targets the low‑volatility, capital‑preservation aspect of money market funds.

3. Monthly Average Dollar Volume ≥ $100,000

   • Purpose: Ensure sufficient trading liquidity.
   • Rationale:
     One of the key characteristics of money market funds is high liquidity—investors can move in and out easily. For listed securities, dollar trading volume is a proxy for how easy it is to buy or sell without moving the price much. A minimum of $100k per month filters out illiquid names and keeps only relatively tradeable, “cash‑like” instruments.

4. 1‑Year Price Change: 2% to 8%

   • Purpose: Target low, bond‑like returns rather than high‑volatility equity returns.
   • Rationale:
     Money market funds typically aim to preserve capital and deliver a return roughly in line with short‑term interest rates, not large price appreciation. Constraining the 1‑year price move to a modest range (2%–8%):
     • Excludes near‑zero or negative return names that may be distressed or illiquid.
     • Avoids high‑return, high‑risk equities that don’t resemble money market behavior.
       This range roughly matches the kind of modest, steady annualized returns you’d expect from lower‑risk, income‑oriented instruments in a normal or slightly elevated rate environment.

5. Region: United States

   • Purpose: Focus on US‑domiciled securities and regulatory framework.
   • Rationale:
     Your prior reference (FGRTX) is a US money market fund. US money market funds are governed by specific SEC rules (e.g., Rule 2a‑7), which shape their risk profiles. By restricting to US securities, the screener stays closer to the regulatory and interest‑rate environment relevant to US money market products, improving comparability to something like FGRTX.

6. Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)

   • Purpose: Use major, regulated US exchanges.
   • Rationale:
     Major US exchanges have higher listing standards, better disclosure, and generally more liquidity. Since money market funds emphasize safety and reliability, focusing on securities listed on NYSE, NASDAQ, or NYSE American helps align with those quality and transparency expectations. It avoids obscure venues where risk and liquidity can be harder to assess.

Why Results Match the Query

• The user asked about money market funds (e.g., FGRTX). Actual money market funds are mutual funds, but in a stock‑screener context, the filters are designed to approximate securities with similar traits: low volatility, modest returns, high liquidity, and US regulatory context.
• Collectively, the filters push the results toward large, stable, low‑beta, modest‑return, liquid US‑listed instruments. These are the listed securities whose risk/return profile is closest to what investors usually seek from money market funds: capital preservation, low volatility, and easy access to cash.