Why Do I Have SPAXX in My Fidelity Account? Did I Buy It Unknowingly?
SPAXX may appear in your Fidelity account when uninvested cash is held in the account’s core position.
Fidelity uses the core position to hold cash and process transactions within the account.
The balance can change when you
- Deposit cash
- Sell investments, or
- Use funds to make purchases.
SPAXX can also generate income on cash that remains in the account.
When Does SPAXX Pay Interest?
SPAXX income accrues daily, but when does Fidelity actually credit the monthly dividend? See the payment schedule, timing and what happens to your earnings.
See the SPAXX Payment ScheduleWhy SPAXX Appears in My Account
If you see SPAXX in your Fidelity account even though you don’t remember buying it, SPAXX may be your account’s core position.
The core position is where Fidelity automatically holds your uninvested cash.
Depending on your account type and the core option you selected, that cash may be invested in
- SPAXX
- Another money market fund
- FCASH, or
- FDIC-insured deposit sweep.
Think of the core position as the cash wallet inside your Fidelity account. Deposits and other cash payments go into it, while purchases and withdrawals come out of it.
Which Fidelity Core Position Should You Choose?
SPAXX, FZFXX, FCASH or an FDIC sweep? See how Fidelity’s core choices compare for yield, access, taxes and protection before you choose.
Compare Your Fidelity Core OptionsHow SPAXX Earns Interest
SPAXX is a government money market fund. Instead of simply leaving your cash sitting idle, the fund invests in short-term government and government-related securities.
The fund’s income is passed on to shareholders through monthly distributions. The amount you earn changes over time as short-term interest rates and the fund’s underlying investments change.
One feature that can be confusing is SPAXX’s $1.00 share price.
Unlike a typical stock or bond fund, SPAXX is designed to maintain a stable $1.00 NAV under normal circumstances. That doesn’t mean your money isn’t earning anything.
Instead, the value you receive comes primarily through the fund’s distributions.
Core Position and Cash Sweep Mechanics
Your core position is the default location Fidelity uses to hold uninvested cash and process cash transactions.
Fidelity automatically establishes a core position when you open an eligible account.
Here’s what typically happens:
- You deposit money: Cash goes into your core position.
- You sell an investment: Proceeds go into your core position.
- You receive a dividend: Cash is deposited into your core position.
- You buy an investment: Fidelity uses available core cash to pay for the purchase.
- You withdraw money: Fidelity takes the cash from your available core balance.
If SPAXX is your core position, the money is generally invested in SPAXX as part of this process.
That’s why you might see a SPAXX balance even though you don’t remember placing a separate SPAXX purchase order.
Why Did Fidelity Put My Cash in SPAXX?
In many Fidelity brokerage accounts, SPAXX is an available core position and may be the default.
Other accounts may use different options.
| Option | Notes | Safety / Insurance | Current Yield* | Best For |
|---|---|---|---|---|
| SPAXX | Money-market fund holding mainly government securities | Not FDIC-insured | 3.47% | Most brokerage cash |
| FZFXX | Money-market fund focused on U.S. Treasuries | Not FDIC-insured | 3.51% | Treasury-focused cash |
| FCASH | Cash balance that Fidelity pays interest on | Not FDIC-insured | 1.94% | Simple cash balance |
| FDIC Sweep | Cash deposited at partner banks | FDIC-insured† | Variable | Maximum deposit insurance |
| FDRXX | Government money-market fund | Not FDIC-insured | 3.54% | Extra money-market investment |
Fees and Expenses
SPAXX’s gross expense ratio is 0.42%.
There are no sales loads or redemption fees.
| Item | SPAXX |
|---|---|
| Expense ratio | 0.42% / year |
| Cost per $1,000 | $4.20 / year |
| Trading fee | $0 |
| Minimum investment | $0 |
| 12b-1 fee | 0% |
| Fee when you sell | $0 |
| Separate bill? | No |
| Important: | Expense is already reflected in the yield |
Liquidity and Redemption
SPAXX is highly liquid.
You can redeem or sell SPAXX shares at any time at the $1.00 NAV.
The redemption settles at the NAV next calculated after your request.
If you wish to move cash out, you can simply sell SPAXX and transfer the proceeds.
Keep in mind that if a transfer is initiated, the cash will come out of your core, potentially needing to sell SPAXX.
But as long as the sale settles, you get full NAV for SPAXX with no penalty.
Which Cash Option Is Right for You?
The best cash option depends mainly on
- What you need the money for
- How much protection you want, and
- How quickly you need access to it.
| If You… | Best Choice | Why |
|---|---|---|
| Plan to invest the cash later | SPAXX | Good yield + easy access + automatic use for trades |
| Want FDIC insurance | FDIC Sweep / HYSA | Bank deposits are FDIC-insured within applicable limits |
| Use the cash frequently | SPAXX | Highly liquid and convenient for Fidelity transactions |
| Want simple cash | FCASH | Easy access, but typically lower interest |
| Prefer Treasuries | FZFXX | Treasury-focused money-market fund |
| Have a Fidelity CMA | SPAXX or FDIC Sweep | You can choose between market-based yield and FDIC protection |
SPAXX is a strong choice for cash you plan to invest later, while an FDIC-insured sweep or high-yield savings account may be better if FDIC protection is your top priority.
SPAXX Core Position FAQs
Fidelity generally places uninvested brokerage cash in a core position such as SPAXX rather than a traditional savings account.
Yes, in theory, although it is designed to maintain a $1 share price and a loss of principal is rare. SPAXX is not FDIC-insured.
You can view SPAXX dividends and other activity in your Fidelity account statements and transaction history.
Go to your Fidelity account’s core position or cash settings and select Change Core Position, then choose an available option.
No. SPAXX generally has no minimum holding period or lockup, although normal trading and settlement rules apply.
No. SPAXX distributions are generally reported as ordinary dividends on Form 1099-DIV, although they are treated as ordinary taxable income rather than qualified dividends.
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