I found this fund vusxx with 0.09% er with 7 days yield as 4.61 right now Also the vusxx has 71% treasury bill which saves on state tax So overall is it better to hold cash in vusxx in a fidelity account What am i missing here? They’re highly liquid, earn better returns than savings accounts and are often used in. Last time i looked vusxx was my best choice in term of yield and tax advantage for holding cash equivalents, spaxx had lower yields for example
Am i missing some other mmf at fidelity that it closer to vusxx? Like vmfxx, vusxx is a government money market fund However, it is a shade safer thanks to its emphasis on treasury bills instead of the more commonly seen repurchase agreements. At fidelity, the standard settlement account is usually selected to be either spaxx or fzfxx Except for vmfxx, spaxx, and fzfxx, the other money market funds are normally purchased as a separate investment in your brokerage account Swvxx and snsxx are common choices with schwab clients
I have my savings in a combination of spaxx and vusxx (slightly higher rate) While there is technically more risk in treasuries vs cash, that risk is so minuscule that it is not worth worrying about. Discover three of the most popular government money market funds well suited for investors seeking capital preservation and minimal risk.
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