SPAXX about to go negative [what are good cash funds?]

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
blockbasher
Posts: 1
Joined: Mon May 18, 2020 2:45 pm

SPAXX about to go negative [what are good cash funds?]

Post by blockbasher »

Welp I'm sure everyone here is aware, but $100,000 in SPAXX paid 79 pennies in June. Any ideas for parking some cash before things may start going negative ?
User avatar
abuss368
Posts: 23044
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: SPAXX about to go negative [what are good cash funds?]

Post by abuss368 »

blockbasher wrote: Wed Jul 01, 2020 4:43 pm Welp I'm sure everyone here is aware, but $100,000 in SPAXX paid 79 pennies in June. Any ideas for parking some cash before things may start going negative ?
What is SPAXX?
John C. Bogle: “Simplicity is the master key to financial success."
Fclevz
Posts: 490
Joined: Fri Mar 30, 2007 11:28 am

Re: SPAXX about to go negative [what are good cash funds?]

Post by Fclevz »

Cool fact: a ticker ending in a double X is a money market fund.

As for it going negative, doubtful, Fidelity will likely just waive expenses to keep that from happening.
User avatar
whodidntante
Posts: 9582
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: SPAXX about to go negative [what are good cash funds?]

Post by whodidntante »

It's unlikely to go negative. Historically, the fund reduced expenses to avoid that.
Although, you're already losing purchasing power by owning a fund that yields a rounding error.
HomeStretch
Posts: 5388
Joined: Thu Dec 27, 2018 3:06 pm

Re: SPAXX about to go negative [what are good cash funds?]

Post by HomeStretch »

Check the rates on savings accounts and CDs (including no-penalty CDs) at online banks like Marcus, Ally, etc.
essbeer
Posts: 214
Joined: Sat May 09, 2015 6:23 pm

Re: SPAXX about to go negative [what are good cash funds?]

Post by essbeer »

I just notice today my SPRXX investment paid $.05 last month. Language on the fund page makes it sound like they are already waiving some of the expense ratio: "Prospectus Net Expense Ratio is 0.42% as of 6/29/2020 and may not include certain voluntary reimbursements and waivers that reduce the actual expenses of the fund. The voluntary reimbursements and waivers can be discontinued at any time."
User avatar
Stinky
Posts: 6399
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: SPAXX about to go negative [what are good cash funds?]

Post by Stinky »

blockbasher wrote: Wed Jul 01, 2020 4:43 pm Welp I'm sure everyone here is aware, but $100,000 in SPAXX paid 79 pennies in June. Any ideas for parking some cash before things may start going negative ?
Look at the bright side.

By early 2021, you’ll have enough to pay for a Big Mac meal.

Maybe even enough for a large fries and an apple pie.
It's a GREAT day to be alive - Travis Tritt
User avatar
JoMoney
Posts: 10522
Joined: Tue Jul 23, 2013 5:31 am

Re: SPAXX about to go negative [what are good cash funds?]

Post by JoMoney »

If you had $100,000 in SPAXX, you should have been in FZCXX , which is the Fidelity® Government Money Market Fund - Premium Class that has a lower Expense Ratio.
... That said, both are currently only yielding 0.01% and only after fee-waivers to keep it from being negative net of ER ...
I've keep a little in FZCXX just to continue to have access to the lower ER fund, but am keeping the bulk the bulk of my cash in a high-yield savings account elsewhere and in U.S. Savings Bonds
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
User avatar
gasman
Posts: 823
Joined: Mon Jul 30, 2007 6:13 pm

Re: SPAXX about to go negative [what are good cash funds?]

Post by gasman »

Tomorrow 4 week T Bill auction. Should yield about 0.12%. 100K for 4weeks should yield about $10. Pre-tax.
annu
Posts: 889
Joined: Mon Nov 04, 2019 7:55 pm

Re: SPAXX about to go negative [what are good cash funds?]

Post by annu »

Thinking about moving some of my mm funds to GNMA/MBS https://investor.vanguard.com/etf/profile/VMBS. Seem to be fully govt backed, with main risk around interest changes, which will bot happen anytime soon....
User avatar
anon_investor
Posts: 4363
Joined: Mon Jun 03, 2019 1:43 pm

Re: SPAXX about to go negative [what are good cash funds?]

Post by anon_investor »

HomeStretch wrote: Wed Jul 01, 2020 6:19 pm Check the rates on savings accounts and CDs (including no-penalty CDs) at online banks like Marcus, Ally, etc.
+1.
RetiredCSProf
Posts: 564
Joined: Tue Feb 28, 2017 4:59 pm

Re: SPAXX about to go negative [what are good cash funds?]

Post by RetiredCSProf »

Fidelity Govt Cash Reserves (FDRXX) in lieu of SPAXX.

I recently received an updated Investment Strategy Report from Fido (this is for a self-managed account). The report recommends FDRXX instead of SPAXX for MM, but offers no rationale for the change. Ironically, a couple years ago, Fido recommended that I switch to SPAXX after I had held FDRXX for many years.
RetiredAL
Posts: 1177
Joined: Tue Jun 06, 2017 12:09 am
Location: SF Bay Area

Re: SPAXX about to go negative [what are good cash funds?]

Post by RetiredAL »

I normally do not leave a large $ amount in a core fund. There is more income available elsewhere for a minor amount of effort.

Based on my actual income receipt for FXNAX ( US Bond Index Fund ) received on 6/30 : 1.86% annualized
Post Reply