Money market funds are low-risk investments for parking your cash, earning interest while providing very good liquidity. These funds are typically made up of short-term, high-quality securities such as Treasury bills, certificates of deposit, and commercial paper. They are considered a safe haven for investors looking to preserve capital and earn a modest return.
The largest fund on our list with $305 billion in assets, the Vanguard Federal Money Market Fund (VMFXX) has the third-lowest expense ratio. This fund is known for its stability and has a long track record of providing competitive yields to investors. It is a popular choice for those seeking a conservative investment option.
Shares of SPAXX stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Fidelity, Charles Schwab, and TD Ameritrade. Investors can easily buy and sell shares of SPAXX to take advantage of its competitive yields and low-risk profile.
On or around June 15, 2024, you'll have the option to elect Fidelity(R) Government Money Market Fund (SPAXX) as your core sweep investment vehicle. This fund aims to provide investors with a stable value investment option that can be used for cash management purposes.
Cash-like funds offer attractive 5%+ yields, making them profitable for conservative investors in the current macro environment with higher interest rates. SPAXX is one such fund that offers competitive yields while maintaining a low-risk profile. Investors can earn a decent return on their cash holdings without taking on excessive risk.
Money Market Funds growth ... SPAXX and VMFXX are two of the biggest money market funds (MMF) in the financial services industry. Fidelity's SPAXX aims to provide investors with a stable value investment option that can be used for cash management purposes. With its competitive yields and low-risk profile, SPAXX is a popular choice among conservative investors.
Therefore, SPAXX and FZSXX and other money market funds are also not exempt from state and local taxes. Dividends paid by SPAXX and FZSXX are generally subject to federal income tax, as well as state and local taxes. Investors should be aware of the tax implications of investing in these funds.
After another interest rate hike from the Federal Reserve, some money market mutual funds are paying above 5%. Currently, it's a higher yield than what most savings accounts are offering. Investors looking to maximize their returns on cash holdings may consider investing in money market funds like SPAXX.
Savings accounts at brokerages aren't often paying an annual percentage yield (APY) as high as you can earn at some online banks. Money market funds like SPAXX offer competitive yields that are typically higher than what traditional savings accounts provide. Investors can earn a decent return on their cash holdings with the added benefit of liquidity and stability.
