Profunds index and sector trading

[kanuti]

That sure seems like a complicated way to figure the interest you are making while in money market. Since the rates fluctuate and your amounts in cash change fairly often would it not be much easier to take the actual amount you receive in interest then convert it to percentage. If you used your beginning monthly balance the interest percentage would be close but not dead accurate, yet closer than your description I believe.

Current yield is 3.46%, the 2.46% you quoted is Average Annual one year. When fed raises rates the money market rate should go up a little more too.

Example: Balance Jan 1 is 100,000 and for the month you are in cash 2/3 of the time. Interest payment 200.00 so that is 0.2% for the month based on the start balance.

If you were in cash all month and received 288.00 would be 0.29%, the current yield rounding off the hundreds.

Irregardless of the number of days in partially or full if the interest on your statement is 121.50 you would record 0.12 for that month.

You would not need to keep track of the days you were in or out of funds or approximate them.