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Follower ○○

SPAXX vs FZDXX

I have 24K invested in SPAXX in my Rollover IRA retirement account at Fidelity. I called one of their reps today to ask about better safe options with a better return for this 24K. It was suggested to me to put it in FZDXX, and I told them that I couldn't meet the minimum investment of $100,000K. They told me that it would only take $10,000K to invest in FZDXX in a retirement account. Does anyone out there know if this is true? I guess I would find out if I tried to make the purchase. 

Before I try this though, can anyone advise me why I might not want to put my $ in FZDXX, Fidelity Money Market Fund - Premium ..... rather than leaving all of it in SPAXX, my present core account.

Thanks, Jody

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54 Replies
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Participant ○○○

Re: SPAXX vs FZDXX

@jody49 

Use it with confidence.  

However, I wouldn't call any money market account an "investment."  Just a holding place.

ctyankee

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Follower ○○

Re: SPAXX vs FZDXX

Jody,

I have been happily using it for over a year; it works like a secondary core account.  When you make a purchase, it takes money from SPAXX first and if additional funds are needed, it will then pull from FZDXX.  I don't see a downside.

HondaMan

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Contributor ○

Re: SPAXX vs FZDXX

Just Do It!

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Frequent Contributor

Re: SPAXX vs FZDXX

Use the m-mkt fund with highest 7-day SEC yield. 

Government SPAXX is default core/settlement option at Fido, so it cannot offer the best yield.

Either government FZCXX or prime FZDXX is fine.

YBB
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Participant ○○○

Re: SPAXX vs FZDXX


@jody49 wrote:

FZDXX, and I told them that I couldn't meet the minimum investment of $100,000K. They told me that it would only take $10,000K to invest in FZDXX in a retirement account. Does anyone out there know if this is true?

 

Its true. I own it in a IRA and its $10k and $100k in a taxable. 


 

 

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Follower ○○

Re: SPAXX vs FZDXX

Re: SPAXX vs FZDXX
@jody49 wrote:

FZDXX, and I told them that I couldn't meet the minimum investment of $100,000K. They told me that it would only take $10,000K to invest in FZDXX in a retirement account. Does anyone out there know if this is true?

Its true. I own it in a IRA and its $10k and $100k in a taxable. 

 

I have over 100k in FZDXX in my IRA. I transfered my VG brokerage to FIDO. I called in about FZDXX and Fido told me i would also need to have over 100k in my Brokerage account. Does this seem right?

 

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Follower ○○

Re: SPAXX vs FZDXX

Thanks to all for the replies!

Jody49

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Participant ○

Re: SPAXX vs FZDXX

If you don’t want to put $10,000 or more in FZDXX, you can invest any amount in SPRXX, which also pays a higher yield than SPAAX.

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Frequent Contributor

Re: SPAXX vs FZDXX

Fwiw, I'm using a combination of MINT, JPST, PIMIX, PDIIX, and FZDXX.  I feel that covers the bases fairly well.

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Contributor ○

Re: SPAXX vs FZDXX

7-day SEC Yld01/31/1912/31/1901/31/20
FZDXX2.39%1.62%1.56%
SPRXX2.27%1.50%1.44%
FDRXX2.10%1.31%1.27%
SPAXX2.04%1.25%1.21%
VMMXX2.48%1.71%1.65%
VMFXX2.31%1.55%1.51%
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Frequent Contributor

Re: SPAXX vs FZDXX


@arriba wrote:
7-day SEC Yld01/31/1912/31/1901/31/20
FZDXX, prime2.39%1.62%1.56%
SPRXX, prime2.27%1.50%1.44%
FDRXX. gov2.10%1.31%1.27%
SPAXX. gov2.04%1.25%1.21%
VMMXX, prime2.48%1.71%1.65%
VMFXX, gov2.31%1.55%1.51%

I have added if the m-mkt funds above are gov or prime (retail). I also mentioned gov FZCXX before [pairs prime FZDXX].

Only gov m-mkt funds cab be brokerage core/settlement funds [SPAXX, VMFXX]. These are not likely to have sudden gates and/or redemption fees as prime (retail) can.

YBB
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Contributor ○

Re: SPAXX vs FZDXX


@yogibearbull wrote:

@arriba wrote:
7-day SEC Yld01/31/1912/31/1901/31/20
FZDXX, prime2.39%1.62%1.56%
SPRXX, prime2.27%1.50%1.44%
FDRXX. gov2.10%1.31%1.27%
SPAXX. gov2.04%1.25%1.21%
VMMXX, prime2.48%1.71%1.65%
VMFXX, gov2.31%1.55%1.51%

I have added if the m-mkt funds above are gov or prime (retail). I also mentioned gov FZCXX before [pairs prime FZDXX].

Only gov m-mkt funds cab be brokerage core/settlement funds [SPAXX, VMFXX]. These are not likely to have sudden gates and/or redemption fees as prime (retail) can.


Thanks YBB.

Here's an updated chart adding FZCXX and your Prime and Gov notations for all.  I don't have the prior historical data for FZCXX but might be able to add it later. 

Please check out this updated chart and make any comments/corrections you deem appropriate.

7-day SEC YldType01/31/1912/31/1901/31/20
FZDXXPrime2.39%1.62%1.56%
SPRXXPrime2.27%1.50%1.44%
FZCXXGov  1.31%
FDRXXGov2.10%1.31%1.27%
SPAXXGov2.04%1.25%1.21%
VMMXXPrime2.48%1.71%1.65%
VMFXXGov2.31%1.55%1.51%

  

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Frequent Contributor

Re: SPAXX vs FZDXX

I keep this list as a guide for my Fidelity accounts.  Listed in order of decreasing yield.

CORE                          MINIMUMS

  Brokerage/Trust IRA   
FZCXX 100K10K
FDRXX N/A0
FZFXX 00
SPAXX 00

 

"CORE BACKUP"          MINIMUMS

  Brokerage/Trust IRA   
FZDXX 100K10K
SPRXX 00
    
    

 

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Frequent Contributor

Re: SPAXX vs FZDXX

What’s the point of keeping more than a couple of bucks in MMs now?

I have around $100 in PCOXX just to keep it open. MM yields are nothing. You can easily get 2% with no risk and 3% with negligible risk.
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Contributor ○

Re: SPAXX vs FZDXX

"You can easily get 2% with no risk and 3% with negligible risk."

 

I would like to know where one can get 2% right now without any risk.

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Contributor ○

Re: SPAXX vs FZDXX


@Fishingrod wrote:

"You can easily get 2% with no risk and 3% with negligible risk."

 

I would like to know where one can get 2% right now without any risk.


Well, IF you regard "interest rate risk" as "no risk" there are a coupla online CDs paying 2+%

https://www.bankrate.com/banking/cds/cd-rates/

and credit unions

https://www.magnifymoney.com/blog/best-of/best-credit-union-cd-rates1150301381/

 

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Contributor ○

Re: SPAXX vs FZDXX

Thanks arriba,

I do consider interest rate risk as a risk. Also a liquidity risk because of possible penalties and time.

I do use two of the best credit unions for all my dealings and CD ladders.

My checking account at one credit union is paying 2% but only on the first $20K.

MINT SEC yld is 1.82% right now.

FCNVX is 1.74% SEC yld.

and more risk BBBIX has an SEC yld of 2.15%

 

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Frequent Contributor

Re: SPAXX vs FZDXX

Scott Black, Delphi, had a warning in Barron's this week to use only Treasuries-m-mkt funds for cash as there may be defaults in commercial paper used in retail prime m-mkt funds. New rules went into effect in 2016 and have yet to be tested.

That warning may be extreme, but don't use retail prime m-mkt funds for checking or for emergency use. Use government m-mkt funds for those.

 

YBB
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Explorer ○○

Re: SPAXX vs FZDXX

Hi arriba,
Interesting From where & How do you Cut&Paste Comparision Table to M* here.
I'd like a link with steps when U get a Chance. I'd like to learn & quickly be able to Do this type of analysis.
Thanks & Appreciate your Input.
Majick.

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