SPAXX vs FZFXX: Picking The Right Core Position

We Compare SPAXX vs FZFXX:

Fidelity Government Money Market Fund (SPAXX) vs Fidelity Treasury Money Market Fund (FZFXX).

Both of these funds aim to preserve capital and liquidity.

I'll break down each to help you decide which core position to choose.

SPAXX vs FZFXX Comparison Graphic


Money Market Funds

Money market mutual funds restrict their investments to U.S. Treasury securities, repurchase agreements collateralized by U.S. Treasury securities, and other government securities.

SPAXX and FZFXX are both mutual funds owned by Fidelity.

Both funds are identical except for their expense ratios and net assets (NAV).

Investors that target financial independence through stable, high-yield investments may love these two, but considering these differences, choosing between the two may be challenging.

Let's find out the implication of these differences.


What Is SPAXX?

Created in 1990, Fidelity Government Money Market Fund (SPAXX) is among the global government money market funds.

Fidelity's SPAXX boasts $219 billion in total assets, making it one of the most widely held money market funds.

SPAXX is very similar to the American Century Capital Preservation Fund in its mission.

SPAXX aims to provide investors with the following:

  • High-Yield Returns
  • High Liquidity
  • Preservation Of Capital

Typically, the fund is nearly 100% invested in cash or cash equivalents (short-term U.S. government securities or repurchase agreements collateralized by U.S. Treasury securities.

SPAXX Profile

  • Expense Ratio (Gross): 0.42%
  • Expense Ratio (Net): 0.15%
  • Dividend Yield: 0.01%
  • One-Year Total Return: 0.01%

More so, the fund maintains a $1 net asset value (NAV) share price.

SPAXX expense ratio (net) is 0.15%.


SPAXX Performance & Returns

SPAXX Performance


Fund Characteristics

SPAXX Holdings


SPAXX Holdings

Top 10 Holdings (66.84% of Total Assets)

SPAXX Top 10 Holdings


What is FZFXX?

Like SPAXX, Fidelity founded FZFXX with the same goal in mind.

The fund seeks to achieve high returns with consistent liquidity and capital preservation.

FZFXX Profile

  • Expense Ratio (Net): 0.29%
  • Dividend Yield: 0.01%
  • One-Year Total Return: 0.01%

Like SPAXX, FZFXX invests more than 80% of its assets in U.S. Treasury securities and repurchases agreements for U.S. Treasury securities.

Fidelity's FZFXX has an expense ratio of 0.29%.


FZFXX Performance & Returns

FZFXX Performance


FZFXX Holdings

Top 10 Holdings

FZFXX Holdings


What Is FCASH?

FCASH is a balance of funds that Fidelity can pay you on demand.

Fidelity is not required to pay interest on FCASH.

Compared to SPAXX and FZFXX, which are money market funds, FCASH is not a money market fund.

Currently, FCASH pays 0.01%, but Fidelity is not required to pay interest on your FCASH balances.



The main difference between SPAXX and FZFXX is their expense ratio. SPAXX has an expense ratio of 0.15%, while FZFXX has an expense ratio of 0.29%.

Here is a comparison between SPAXX and FZFXX:

SPAXX vs FZFXX Comparison Chart

FZFXX and SPAXX are mutual funds with the same 5-year return (0.82%).

The expense ratio of these two funds is a significant difference.

An expense ratio is a percentage of the costs of operating mutual funds and exchange-traded funds (ETFs) in a fiscal year that investors must pay.

It covers administrative, marketing, and compensation for fund managers.

Since these funds are professionally managed, saving you the stress of picking and trading stocks, the people doing your hard work must be compensated.

This may explain why some funds charge high expense ratios.

The fund manager may be a high-profile individual with a success rate.

However, this fee is usually lower with mutual funds and ETFs that prefer passive management.

These funds will track the performance of an index and seek to replicate it.

The expense ratio here covers license fees majorly.

The expense ratio is important to investors (especially long-term investors), and it's usually best to look for an investment with a low expense ratio.

A low expense ratio can mean more returns, while high expense ratios significantly cut off your potential returns over the long term.


What Is a Good Expense Ratio?

A “good” expense ratio will be relative depending on whether the mutual fund and ETF are actively or passively managed.

Active funds tend to involve more rigorous processes, research, and trading; therefore, the cost of operation may be higher, which means a higher expense ratio.

A decent expense ratio for actively managed mutual funds may range from 0.04% to 1.0%, 0.40% for a domestic bond fund, and 1.0% for an international stock fund.

A passive fund will most likely attract minimal management cost and a reasonable expense ratio ranging from 0.05% to 0.20%.

FZFXX has an expense ratio of 0.29%

SPAXX has an expense ratio of 0.15%

Both SPAXX and FZFXX are passively managed funds.

From what a “good” expense ratio for a passively managed fund should be, FZFXX may be said to have a high expense ratio.

An expense ratio of 0.15% (for SPAXX) is above average but still meets the standard for a reasonable expense rate.


SPAXX vs FZFXX Net Asset Value (NAV)

In the world of investing, net asset or net asset value (NAV) is one of the indicators of a good investment.

Generally, it is the value of a fund's assets minus its liabilities.

However, the term (net asset rather than net worth) is often used in connection to mutual funds or ETFs.

This is because it measures 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 fund's liabilities and expenses.

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

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

This helps determine the exact value of the fund.

A positive 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's Net Asset Value is $214 billion

FZFXX's Net Asset Value is $30 billion

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

However, SPAXX beats FZFRXX with $184 billion more in net assets.

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My Winner: SPAXX

SPAXX and FZFXX are extremely similar.  They are mutual funds with the same high income, liquidity, and preserved capital goals.

Their historical yield is also almost the same.

However, FZFXX has a higher expense ratio than SPAXX (0.29% vs 0.15%).  The difference is significant.

SPAXX has more net assets ($214 billion) than FZFXX ($30 billion), a huge difference of $184 billion.

From this analysis, SPAXX wins the comparison.

It offers more liquidity at a lower cost compared to FZFXX.