SPAXX, FZFXX or FCASH: Picking a Fidelity Core Position

Someone asks:

I’m helping a friend open a brokerage account with Fidelity. We both already have our 401k account with them. He’s wondering what he should choose for his Core Position (SPAXX, FZFXX, or FCASH).

Any suggestions? Also, how would I find out what my core position is? I already have a brokerage account, and I think I have FCASH, but I’m not sure.

What Is a Fidelity Core Position?

When you open a Fidelity account, you are automatically assigned a core position. Its primary function is to process cash transactions and to hold uninvested cash. By default, SPAXX, a money market fund, will hold your uninvested cash. This is essentially your core position.

When you are ready to invest, the cash in your core position will be used to cover the transaction.

In addition to SPAXX, you have other money market funds to choose from.

Here’s a complete list of available money market funds for your Fidelity’s core position.

Which Fidelity Core Position Should I Pick?

It doesn’t matter which fund you pick as your “Core Position.” You should be investing your money into securities such as stocks, options, and/or index funds.

Your money is losing to inflation just by sitting in one of Fidelity’s money market funds.


Sean C:

SPAXX is Fidelity’s Government Money Market Fund, and it’s there for your settlement fund.

Your settlement fund is your “holding” account, where your money is parked before you invest it. It’s normal for your contributions to show as being in SPAXX until it’s put into other investments.

Joe B:

Three different funds with investments that are slightly similar. Basically unless the financial world falls into the crapper, they all offer a pretty much but not completely safe area to park cash in.

Andrew B:

SPAXX is held in government securities. If it breaks the buck, the concept of the dollar itself is in question. You’ll be fine in that fund for the time being. If you prefer, you can open a cash management account with FDIC insurance.

Aaron C:

Since the Fed cut interest rates, all money markets have become essentially the same. The only thing the FDIC guarantees is the lowest possible rate.

Justin L:

Which is the preferred core position? FZFXX? And how much does this truly matter? Not much money is usually there. I’ve read some of the prospectuses, but they don’t seem all that different.

SC Francis:

My friend asked me what the differences were between these three core positions. I didn’t have the correct answer until I came across this thread. Thank you. I have FCASH.