Thursday, November 17, 2022

What Is Fidelity Government Money Market Fund Spaxx

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Where Can I Find My Account Number

Is Spaxx a safe investment?

All brokerage securities held in an account are listed under a single brokerage account number. This number always has 9 characters and can be found in your portfolio summary.

A separate account number may be added to your account if you establish direct deposit.

Any deposits to your brokerage account are made to the core account, including:

  • Your initial investment
  • Deposited checks and direct deposit of pay
  • Trade proceeds
  • Cash dividends

Collection periods vary depending on the deposit method. The collection period for check and EFT deposits is generally 4 business days. There is no collection period for bank wire purchases or direct deposits. Trade proceeds vary according to the security being traded.1

1. We reserve the right to require equity of up to 100% of the proposed trade’s value in any account. Fidelity may waive this requirement for customers with previous Fidelity credit history or mutual fund assets on deposit. First-time traders with Fidelity Brokerage Services LLC, are required to deposit at least 25% of the value of the trade. Retirement accounts require 100% of the proposed trade’s value at the time the trade is placed.

What Do The Different Account Values Mean

Balance

Total account value

Total account value The total market value of all positions in the account, including core, minus any outstanding debit balances and any amount required to cover short options positions that are in-the-money Real-time
Cash Account settlement position for trade activity and money movement. Executed buy orders and cash withdrawals will reduce the core, and executed sell orders and cash deposits will increase the core. Overnight
Cash credit/cash debit A cash credit is an amount that will be credited to the core at trade settlement. A cash debit is an amount that will be debited to the core at trade settlement. Intraday
Held in cash The total market value of all long cash account positions. This figure is reduced by the value of any in-the-money covered options and does not include cash in the core position. Real-time

Cash available to trade

Cash available to withdraw

Cash available to withdraw Amount collected and available for immediate withdrawal. This balance includes both core and other Fidelity money market funds held in the account. This balance does not include deposits that have not cleared. Sell orders are reflected in this balance on settlement date and buy orders are reflected on trade date. Intraday
Cash Account settlement position for trade activity and money movement. Executed buy orders and cash withdrawals will reduce the core, and executed sell orders and cash deposits will increase the core. Overnight

Options balances

Why Are Money Market Funds A Good Option

Money market funds can be a highly useful tool for holding the cash component of your investment portfolio. The key advantage of money market funds is the fact that they are highly liquid investments.

Take a real estate investment property, for example. Real estate may offer rich returns over the long term, but its a highly illiquid investment as it would require at least a couple of months to sell a property and get cash. A savings account, on the other hand, is highly liquidyou can just go to an ATM to get cash.

Money market funds offer higher liquidity than certificates of deposit and Treasury bills while also offering ultra-low risk. Unlike CDs, which you generally need to hold to maturity to cash out without penalty, money market funds dont have maturities and can be liquidated on demand. You can sell Treasury bills on the secondary market with ease, but its also possible to take a loss on the sale.

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What Is A Money Market Fund

A money market mutual fundoften referred to as a money market fundis a low-risk investment vehicle that provides both a modest return on your money and a high degree of liquidity. That means you can easily and quickly move cash in and out of a money market fund without fees or penalties.

Money market mutual funds were first developed in the 1970s before bank money market accounts came on the scene, as an alternative to low-yielding savings accounts. As its name suggests, a money market fund is a type of mutual fund, which invests its shareholders money in short-term, high-quality debt. This makes a money market fund much less risky than mutual funds that buy stocks or even longer-term bonds.

Money market funds can be categorized into three groups: prime, government and tax-free.

  • Prime money market funds are typically invested in short-term corporate and bank debt securities.
  • Government money market funds invest at least 99.5% of their funds in government-backed securities, making them extremely safe investments.
  • Tax-free money market funds are invested primarily in municipal bonds or debt issued by other entities whose interest payments are exempt from federal income taxes.

Us Reform: Sec Rule Amendments Released July 24 2014

Fidelity Government Money Market Fund Fund Forecast: up to ...

The Securities and Exchange Commission issued final rules that are designed to address money funds susceptibility to heavy redemptions in times of stress, improve their ability to manage and mitigate potential contagion from such redemptions, and increase the transparency of their risks, while preserving, as much as possible, their benefits.

There are several key components:

Floating NAV required of institutional non-government money funds

The SEC is removing the valuation exemption that permitted these funds to maintain a stable NAV, i.e., they will have to transact sales and redemptions as a market value-based or “floating” NAV, rounded to the fourth decimal place .

Fees and gates

The SEC is giving money fund boards of directors the discretion whether to impose a liquidity fee if a fund’s weekly liquidity level falls below the required regulatory threshold, and/or to suspend redemptions temporarily, i.e., to “gate” funds, under the same circumstances. These amendments will require all non-government money funds to impose a liquidity fee if the fund’s weekly liquidity level falls below a designated threshold, unless the fund’s board determines that imposing such a fee is not in the best interests of the fund.

Other provisions

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Their Holdings May Include Debt Issued By The Likes Of Bear Stearns Freddie Mac And Some Other Less

In stressful times, you may hear advisers and strategists recommend that investors raise their allocations to “cash.” There are two reasons for doing so. First, cash, which is presumably risk free, protects your portfolio from losses. Second, raising cash builds reserves you can use to buy stocks, junk bonds or other assets at lower prices once the backdrop brightens.

But just what is cash? And is it as safe as it appears to be?

In finance, cash is more than the green paper you carry in your wallet. The financial world’s definition of cash — sometimes it’s referred to as cash equivalents — is any investment with a fixed value that is easy to buy and sell.

This includes Lincolns and Hamiltons as well as savings and checking deposits and shares of money-market mutual funds. Short-term certificates of deposit and U.S. Treasury bills also count. The bedrock assumption is that if you invest $1 in any of these forms, your investment is worth $1 anytime, no questions asked.

But financial engineers have also invented all sorts of other cash equivalents. These are short-term interest-earning investments that are designed to maintain a stable value — that’s behind the comparison to cash — but that are not necessarily liquid and not guaranteed by the government.

Spaxx Vs Fzfxx Net Asset Value

In the world of investing, net asset or net asset value is one of the indicators of a good investment. Generally, it is the value of a funds assets minus the value of its liabilities.

However, most often, the term is used in connection to mutual funds or ETFs. It is a measure of the value of the assets/holdings in the fund.

In a mutual fund or ETF, the value of assets will be the value of the securities in the portfolio. On the other hand, the value of liabilities will be the value of all of the funds liabilities and expenses.

This includes operational fees, management expenses, audit fees, and salaries.

Investors consider the net asset of a fund because it shows the difference between what the entity owns and what it owes.

This helps determine the exact value of the fund.

Apositive NAV may be an indication of good financial health.

If the fund has a negative NAV, the possibility that it will soon face serious financial difficulties is high.

SPAXX Net Asset Value is $214.74B

FZFXX Net Asset Value is $30.71B

These figures show that both funds are at an all-time high with high net asset values.

However, SPAXX is beating FZFRXX with $184.03B more in net assets.

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Top Government Money Market Funds

Government money market mutual funds include funds that only invest in the following assets:

  • U.S. Treasury securities
  • Repurchase agreements collateralized by U.S. Treasury securities
  • Other types of government securities

Government money market funds attract conservative investors who gravitate to stable, highly liquid vehicles that carry minimal credit risk. Consequently, nearly all mutual fund providers offer some version of these funds. The following three well-known examples dominate the investment landscape and have helped popularize this investment category.

How Is My Account Protected

Fidelity Core Position Explained FAST! – Financial Dad Quick Tip #16

Protecting your account assetsFidelity’s brokerage businesses are members of the Securities Investor Protection Corporation , and brokerage accounts maintained with Fidelity are covered by SIPC, which protects brokerage accounts of each customer when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts.

SIPC protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash awaiting reinvestment. Money market funds held in a brokerage account are considered securities.

In addition to SIPC protection, Fidelity, through NFS, provides its brokerage customers with additional excess of SIPC coverage from Lloyd’s of London together with Axis Specialty Europe Ltd. and Munich Reinsurance Co. The excess of SIPC coverage would only be used when SIPC coverage is exhausted. As with SIPC, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through Fidelity’s excess of SIPC policy is $1 billion.

Furthermore, we also offer protection for your assets in the case of unauthorized activity in your account. For more information, please see our Customer Protection Guarantee.

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How Do I Give Someone Else The Right To View Or Transact In My Account

You can add a trading authorization to allow another person to trade in your account:

  • Limited trading authorization allows buying or selling securities in your account.
  • Full trading authorization allows buying and selling securities as well as withdrawing money from your account. Full trading authorization has limitations for some types of accounts.

To get started, fill out a form available in account access rights.

Are All Of Fidelity’s Products And Services Available To Customers Residing Outside Of The United States

No, our product and service offerings for customers and prospective customers who reside outside of the United States are limited. While the questions below provide a general overview of those limits, because so much is dependent on the particulars of your specific situation, we suggest you call us at 800-343-3548 to learn about how they apply to you. If you are calling us from outside the United States, please visit Fidelity Phone Numbers, For Customers Traveling Abroad to see a list of available international phone numbers available.

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All Spaxx Fidelity Investment Platforms In More Detail

You can compare SPAXX Fidelity Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options,regulation and account types side by side.

We also have an indepth Top SPAXX Fidelity Investment Platforms for 2022 article further below.

We have listed top SPAXX Fidelity Investment Platforms below.

American Century Capital Preservation Fund

MKSXX

The American Century Investments Capital Preservation Fund Investor Class was launched by American Century in 1972, and has over $2.22 billion in total assets under management , as of June 2021. The fund is primarily known for maximizing safety and liquidity. The fund aims to achieve the highest possible yield return consistent with its asset mix, which consists of Treasury bills, bonds, and notes. The fund ordinarily invests solely in short-term U.S. Treasury money market securities. The weighted average maturity of its portfolio holdings is 58.55 days.

The gross annual expense ratio for the Capital Preservation Fund was 0.48% as of May 2021. Its one-year total return as of December 2020 was 0.01%. This mutual fund is appropriate for investors whose current investment goals align with those of the strategy and who seek a pure-play government money market fund that invests exclusively in U.S. Treasury securities.

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Ive Recently Moved Outside The United States What Does That Mean For Me

Regardless of where you move, the following applies:

Fidelity does not provide discretionary asset management services to customers who reside outside the United States. If you move outside the United States, your discretionary asset management relationships will be terminated, and certain mutual funds held in those accounts may be liquidated as part of that termination.

The services provided by our representatives are limited to those that are ministerial or administrative in nature. Among other things, this means that our representatives do not engage in discussions with customers about such topics as asset allocation, income planning, or portfolio composition.

Customers residing outside the United States will not be allowed to open new 529 Savings Plan Accounts or Health Savings Accounts , or to continue to contribute to existing 529s or HSAs.

Customers residing outside the United States will not be allowed to purchase shares of mutual funds.

There are additional restrictions that may apply, depending on the country where you now reside. Customers in certain countries may be limited to selling their existing holdings and withdrawing the proceeds from their accounts. They will not be able to make deposits in their accounts, or buy any additional securities. In most other countries, the restrictions will be less onerous, but customers may still experience certain limitations .

Fidelity Government Money Market Fund

Fidelity launched the Fidelity Government Money Market Fund in 1990, and boasts $219.95 billion in total assets as of May 2021, making it one of the most widely held funds in this category. Similar to the American Century Capital Preservation Fund, SPAXX strives to usher in high-yield returns, with high liquidity, and an emphasis on capital preservation.

The fund is typically 99.5% or more invested in cash or cash equivalents in the form of short-term U.S. government securities or repurchase agreements that are fully collateralized by cash or such securities. Some U.S. government securities are issued by duly authorized government agencies but are not directly issued nor guaranteed by the U.S. Treasury.

In selecting the fund’s investments, the funds management team focuses on maintaining a stable $1 net asset value share price. The weighted average maturity of the portfolio holdings is 54 days.

As of May 2021, the funds top holdings included the following:

  • U.S. Treasury Bills
  • Agency Fixed-Rate Securities
  • U.S. Treasury Coupons

The fund has an annual expense ratio of 0.42% and a dividend yield of 0.01%. Its one-year total return is 0.00%. This fund is well suited for investors who prefer its broad range of investments.

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Why This Doesnt Matter

Since the point of an investment account is to invest, you generally shouldnt have money just sitting around in cash. This is especially true for young people inside of a retirement account like a Roth IRA. If you have money sitting in your core position in your Roth IRA, youre likely making a big mistake. You want to invest that money in something like a target date index fund. And since youll have no money in your core position, it doesnt really matter what your core position is! That said, lets break it down anyway.

Best Money Market Funds Methodology

Fidelity Government Bond Fund | Fidelity Corporate Bonds

The best money market funds offer a combination of positive yield, low risk and a low expense ratio. To make our selection, we combed through the list of money market mutual funds at MutualFunds.com and identified nine with the highest yields, lowest expenses and a minimum investment balance of $1,000,000 or lower.

Note that the seven-day yield is an industry standard for side-by-side comparisons of money market funds. It takes into account fund distributions plus appreciation, minus average fees over a seven-day period, and assumes that this average continues over an entire year.

When you are selecting a money market fund, make sure you can meet the minimum investment balance. In addition, its important to understand the investments held by each fund. Carefully research your options before making a decision.

And keep in mind that when it comes to investing, past performance is no guarantee of future results.

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Money Market Fund Vs Savings Account

If this sounds similar to a high-yield savings account or a money market account, it is. The biggest difference is that yields on money market mutual funds respond much more rapidly to changes in market interest rates. As interest rates rise, the APYs on most money market accounts and savings accounts lag the market significantly while money market fund yields respond immediately.

This can make money market funds a great choice for earning a return on your cash. Thats particularly true when you know you have an upcoming big-ticket purchase and you need quick access to cash.

Lets say youve saved up a down payment for your first home, for example, and youre searching for the perfect property. Putting that money into stock investments would be too risky since you want to buy the house soon and market volatility could eat up some of your investment. But the balance is large enough that you dont want to miss out on earning interest by holding it in your checking account. In that case, a money market fund would offer you the liquidity and stability you want with the potential for a modest return.

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