So I woke up today and found this SPAXX investment in my portfolio. I never bought this and I don’t know what it is. I have an option to sell this. Can someone enlighten me what this is? I’m a new investor and I’m still in the learning process.
What Is SPAXX?
SPAXX is the ticker symbol for Fidelity Government Money Market Fund. When you deposit money into your Fidelity account, SPAXX will be used to hold that cash. This also applies to any uninvested or unsettled cash you may have available in your balance. In other words, SPAXX is your core cash position. Now that you know the fact, there is no need to panic.
Fidelity SPAXX Interest Rate in 2023
You will receive interest for any uninvested cash in your SPAXX core position.
As of February 6th, 2023, the 7-day yield on Fidelity’s SPAXX fund stands at 4.11%, which is notably higher than the average yield of 0.01%.
4 thoughts on “What Is SPAXX in Fidelity? Why Is This Under My Account?”
I’m new here. I’m a big fan of Fidelity, but I’m curious about SPAXX. I see that it’s listed as “cash,” but I’m not sure if it’s cash that I can use to invest or if it’s already invested in the market. Can anyone clarify this for me?
This is an interest-bearing money market account that holds your cash until you decide to invest it.
SPAXX and SPRXX keep climbing slowly. It’s the perfect place to park some cash as opposed to CDs, where you have to commit to a timeline.
While my bank offers a 3.75% interest rate on my savings account, I’ve noticed that options like SPAXX yield over 4%. Currently, it is the simplest choice for flexibility.
I looked at the SPAXX information and noticed that the 1 year yield is 1.31%, which is much higher than the local bank’s money market. But then it drops down a bit. At the end of the chart, it shows 2.54% for Life.
This was under the Quarter-End Annual Average End Returns. Although I see 7 Day yield at 4.11%, which is fascinating. Am I to understand that this SPAXX fund will compound/yield/grow over time if I keep some of the money in there even if I don’t invest in other stocks or bonds?
I know it’s not FDIC insured, but it accrues a tiny bit faster than a money market or savings account that a regular bank does, and as long as I keep depositing/contributing to it. Otherwise, it does look like it’s designed for short term than long term investing.