Money market funds are not money market deposit accounts at a bank (which are FDIC insured up to $100,000 per depositor). Money market funds are mutual funds that invest in securities that before this week were said to be relatively low-risk: government securities, certificates of deposit, asset-backed commercial paper and other liquid securities.
Money market deposit accounts are interest-bearing bank accounts that are insured.
How can you protect yourself? Once you decide on a provider, read the propectus, and call if there’s something you don’t understand. One planner suggests that invesors ask and ask and ask until they are fully satisfied and comfortable with what they own.
This is a wise move, no matter where you’re looking to invest. Transparency is inherent in ETFs, by the way. You can visit a number of sources to easily research holdings and their weightings. It’s a great way to take charge of your investments and where your money goes.