First Stocks, Now Money Markets?

In a message to investors today, Vanguard said that all of the investments in its money markets "are closely examined" by its "highly skilled and experienced credit analysts." It also noted that one of its funds has no exposure to types of investments used by dealers including Lehman Brothers and does not include any AIG stock.

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Fidelity said on its Web site: "We can state unequivocally that Fidelity's money market funds and accounts continue to provide security and safety for our customers' cash investments."

The company said it is "our #1 objective" to keep the fund's value above $1.

Fidelity spokesman Vin Loporchio said the message was posted because the company wanted to be proactive in reaching customers.

"Obviously this week has been out of the ordinary," he said.

Fidelity is the country's largest mutual fund company and had $432.5 billion in money market funds at the end of August.

Deborah Cunningham, chief investment officer of taxable money markets for Federated Investors, said she didn't see any reason for investors to panic.

When choosing a fund, she said, see if it fits with the company's core business or if it has grown out as a new side business.

"This is an industry that has experienced tremendous amounts of safety and liquidity," she said. "This is a single aberration, but nothing more than that."