Fund Comparison

Fidelity offers dozens of money market mutual funds, including many government and Treasury money market funds with similar sounding names. Two of the largest funds in the marketplace today are the Fidelity Treasury Money Market Fund (FZFXX) and the Fidelity Treasury Only Money Market Fund (FDLXX). Comparing FZFXX vs FDLXX may be confusing because the name and fund details are nearly identical, although there is one important difference.

The Short Answer

Comparing FZFXX vs FDLXX is interesting because they are nearly identical from a risk and return perspective, but the taxation is very different. FZFXX primarily owns Treasury repurchase agreements (repos), while FDLXX owns actual Treasuries outright (which are exempt from state tax).

FZFXX vs FDLXX Historical Performance

Since their common inception, FZFXX and FDLXX have has identical performance! Currently the yield difference is about .04%, so future performance may deviate more although 4 basis points is a miniscule difference.

Current Yields for FDLXX & FZFXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both FZFXX and FDLXX can be found on the fund’s webpages. See here for FZFXX and here for FDLXX.

What rate is FZFXX & FDLXX paying?

The current interest rate for FZFXX, FDLXX, and other Fidelity money markets can be found on Fidelity’s money market page.

FZFXX & FDLXX Details

The expense ratio is .42% for both FZFXX and FDLXX. Neither fund charges a load or 12b-1 fees.

Neither FZFXX nor FDLXX has a minimum investment and investors can invest as little as one cent.

I have not checked every brokerage, but FZFXX and FDLXX are generally only available to clients of Fidelity.

Like most money market mutual funds, investors can sell FZFXX or FDLXX at any time.

FZFXX vs FDLXX Risks

Hypothetically, an investor could lose money with FZFXX or FDLXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in FDLXX or FZFXX though.

As of July 31, 2023, FZFXX’s portfolio was over $41 billion, while FDLXX was nearly $5 billion.

IS FZFXX or FDLXX FDIC Insured?

No, neither FZFXX nor FDLXX are FDIC insured.

Holdings

The two funds both invest in Treasury-related securities. However, most of FZFXX’s holdings are in Treasury repurchase agreements (80%), while 81% of FDLXX is in Treasuries that it owns outright. The historical performance and yields are nearly identical because Treasuries and Treasury repos are nearly identical.

Tax Considerations

FZFXX and FDLXX are Treasury funds which means that they invest in Treasuries and related debt instruments. However, taxable investors may find better after-tax yields in municipal (muni) money market funds, which offer tax benefits that may improve investors’ after-tax yield.

Treasuries and Treasury Money Markets

Treasuries are treated very differently than other money market assets (including Treasury repos) for tax purposes. Income from the Treasury repos (that FZFXX owns) is subject to state income tax. Income from Treasury bonds is exempt from state income tax. Therefore, FDLXX is generally a much better choice for any investor subject to state tax.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

High Balances

Investors allocating more than $1 million may want to consider the “Class I” share class of these funds, whose symbols are FISXX (similar to FZFXX) and FSIXX (similar to FDLXX).

Is FZFXX or FDLXX a Better Fund?

As mentioned above, the funds are nearly identical. For investors who live in states with no state income tax or those investing in tax-deferred or tax-exempt accounts (such as IRAs, 401k’s, Roth accounts, etc), then FZFXX has a slightly higher yield. However, nearly all of FDLXX’s income is exempt from state tax, so the after-tax yield is meaningfully higher for investors subject to state taxes.

Fidelity offers several government money market mutual funds, including the Fidelity Government Money Market Fund Premium Shares (FZCXX) and the Fidelity Government Money Market Fund (SPAXX). Many investors ask about the differences between these two funds since they are two of the largest government money market mutual funds in the market today. When comparing FZCXX vs SPAXX, it is clear which fund is best for most investors.

The Short Answer

FZCXX and SPAXX are two share classes of the exact same fund! There is no need to compare FZCXX vs SPAXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $100,000 or more will get a higher yield with FZCXX.

FZCXX vs SPAXX Historical Performance

Since its inception, FZCXX has outperformed SPAXX by .10% on an annualized basis. This has compounded to a .78% cumulative difference over the past 7 years, which is relatively small. Currently the yield difference is about .10%, which is consistent with the historical performance difference.

Current Yields for SPAXX & FZCXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both FZCXX and SPAXX can be found on the fund’s webpages. See here for FZCXX and here for SPAXX.

What rate is FZCXX & SPAXX paying?

The current interest rate for FZCXX, SPAXX, and other Fidelity money markets can be found on Fidelity’s money market page.

SPAXX & FZCXX Details

The expense ratio is .42% for the SPAXX investor shares and .32% for the FZCXX premium shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SPAXX has no minimum investment and investors can invest as little as one cent, while FZCXX has a minimum investment of $100,000. My observation is that investors can keep FZCXX even if they sell and their balance falls below $100,000. The $100,000 minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but FZCXX and SPAXX is generally only available to clients of Fidelity.

Like most money market mutual funds, investors can sell FZCXX or SPAXX at any time.

SPAXX & FZCXX Risks

Hypothetically, an investor could lose money with FZCXX or SPAXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SPAXX or FZCXX though.

As of July 31, 2023, the fund was composed of approximately $251 billion in the investor shares and $8 billion in premium shares.

IS SPAXX or FZCXX FDIC Insured?

No, neither SPAXX nor FZCXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The largest holding is repurchase agreements (repos) at 63%, followed by agency debt at 18%, and Treasuries at 10%, among other asset classes. The vast majority of the fund’s holdings have a maturity of less than one week (80%).

High Balances

Investors allocating more than $100,000 may want to consider the “premium” share class of the fund, whose symbol is FZCXX.

Tax Considerations

SPAXX and FZCXX are government funds which means that they invest in government debt instruments. However, taxable investors may find better after-tax yields in Treasury or municipal (muni) money market funds, both of which offer tax benefits that may improve investors’ after-tax yield.

Government and Treasury Money Market Funds

Most states have an income tax. However, interest from Treasuries is exempt from state tax. Therefore, investors in states with income tax may be better off with a Treasury money market fund (such as SNSXX or SUTXX) that only invests in Treasuries.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? FZCXX or SPAXX?

Overall, SPAXX is a good investment for many situations (and I have used it many times). Those investing more than $100,000 should generally go with FZCXX for the higher yield. Investors who are subject to high tax rates may want to consider other funds though.

Fidelity offers several “prime” money market mutual funds, including the Fidelity Money Market Fund Premium Shares (FZDXX) and the Fidelity Money Market Fund (SPRXX). Many investors ask about the differences between these two funds since they are two of the largest prime money market mutual funds in the market today. When comparing FZDXX vs SPRXX, it is clear which fund is best for most investors.

The Short Answer

FZDXX and SPRXX are two share classes of the exact same fund! There is no need to compare FZDXX vs SPRXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $100,000 or more will get a higher yield with FZDXX.

FZDXX vs SPRXX Historical Performance

Since its inception, FZDXX has outperformed SPRXX by .12% on an annualized basis. This has compounded to a 1.07% cumulative difference over the past 8 years, which is relatively small. Currently the yield difference is about .12%, which is consistent with the historical performance difference.

Current Yields for SPRXX & FZDXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both FZDXX and SPRXX can be found on the fund’s webpages. See here for FZDXX and here for SPRXX.

What rate is FZDXX & SPRXX paying?

The current interest rate for FZDXX, SPRXX, and other Fidelity money markets can be found on Fidelity’s money market page.

SPRXX & FZDXX Details

The expense ratio is .42% for the SPRXX investor shares and .30% for the FZDXX premium shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SPRXX has no minimum investment and investors can invest as little as one cent, while FZDXX has a minimum investment of $100,000. My observation is that investors can keep FZDXX even if they sell and their balance falls below $100,000. The $100,000 minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but FZDXX and SPRXX is generally only available to clients of Fidelity.

Like most money market mutual funds, investors can sell FZDXX or SPRXX at any time.

SPRXX & FZDXX Risks

Hypothetically, an investor could lose money with FZDXX or SPRXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SPRXX or FZDXX though.

As of July 31, 2023, the fund had nearly $86 billion in net assets. This was composed of approximately $9 billion in the investor shares and $77 billion in premium shares.

IS SPRXX or FZDXX FDIC Insured?

No, neither SPRXX nor FZDXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The largest holding is repurchase agreements (repos) at 67%, followed by commercial paper at 15%, and CDs at 13%, among other asset classes. The vast majority of the fund’s holdings have a maturity of less than one week (77%).

High Balances

Investors allocating more than $100,000 may want to consider the “premium” share class of the fund, whose symbol is FZDXX.

Tax Considerations

SPRXX and FZDXX are “prime” funds which means that it can invest in both government and non-government financial instruments. However, taxable investors may find better after-tax yields in government or municipal (muni) money market funds, both of which offer tax benefits that may improve investors’ after-tax yield.

Government and Treasury Money Market Funds

Most states have an income tax. However, interest from Treasuries is exempt from state tax. Therefore, investors in states with income tax may be better off with a Treasury money market fund (such as SNSXX or SUTXX) that only invests in Treasuries.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? FZDXX or SPRXX?

Overall, SPRXX is a good investment for many situations (and I have used it many times). Those investing more than $100,000 should generally go with FZDXX for the higher yield. Investors who are subject to high tax rates may want to consider other funds though.

Schwab offers several municipal (muni) money market mutual funds including the Schwab AMT Tax-Free Money Fund Ultra Shares (SCTXX) and the Schwab AMT Tax-Free Money Fund Investor Shares (SWWXX). Many investors ask about the differences between these two funds since they are two of the largest AMT tax-free muni money market mutual funds in the market today. When comparing SCTXX vs SWWXX, it is clear which fund is best for most investors.

The Short Answer

SCTXX and SWWXX are two share classes of the exact same fund! There is no need to compare SCTXX vs SWWXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $1M or more will get a higher yield with SCTXX.

SCTXX vs SWWXX Historical Performance

Since its inception, SCTXX has outperformed SWWXX by .08% on an annualized basis. This has compounded to a .23% cumulative difference over the past 3 years, which is relatively small. Currently the yield difference is about .15% however, so future performance may deviate further.

Current Yields for SWWXX & SCTXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both SCTXX and SWWXX can be found on the fund’s webpages. See here for SWWXX and here for SCTXX.

What rate is SCTXX & SWWXX paying?

The current interest rate for SCTXX, SWWXX, and other Schwab money markets can be found on Schwab’s money market page.

SWWXX & SCTXX Details

The expense ratio is .34% for the SWWXX investor shares and .19% for the SCTXX ultra shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SWWXX has no minimum investment and investors can invest as little as one cent, while SCTXX has a minimum investment of $1 million. My observation is that investors can keep SCTXX even if they sell and their balance falls below $1 million. The $1 million minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but SCTXX and SWWXX is generally only available to clients of Charles Schwab.

Like most money market mutual funds, investors can sell SCTXX or SWWXX at any time.

SWWXX & SCTXX Risks

Hypothetically, an investor could lose money with SCTXX or SWWXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SWWXX or SCTXX though.

As of June 30, 2023, the fund was composed of approximately $947 million in the investor shares and $1.2 billion in ultra shares.

IS SWWXX or SCTXX FDIC Insured?

No, neither SWWXX nor SCTXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The funds own 48% variable rate demand obligations (VRDNs), 27% tender option bonds, 12.4% commercial paper, and some smaller asset classes. 87.1% of the funds’ holdings have an effective maturity of less than one week.

High Balances

Investors allocating more than $1 million may want to consider the “ultra” share class of the fund, whose symbol is SCTXX.

Tax Considerations

SWWXX and SCTXX are municipal funds which means that they only invest in municipal-related securities. However, investors who are not in the highest marginal tax rates may be better off investing in a non-muni money market fund.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? SCTXX or SWWXX?

Overall, SWWXX is a good investment for many situations. Those investing more than $1 million should generally go with SCTXX for the higher yield. Investors who are not subject to the highest tax rates may want to consider other funds though.

Schwab offers several municipal (muni) money market mutual funds including the Schwab New York Municipal Money Fund Ultra Shares (SNYXX) and the Schwab New York Municipal Money Fund Investor Shares (SWYXX). Many investors ask about the differences between these two funds since they are two of the largest muni money market mutual funds in the market today. When comparing SNYXX vs SWYXX, it is clear which fund is best for most investors.

The Short Answer

SNYXX and SWYXX are two share classes of the exact same fund! There is no need to compare SNYXX vs SWYXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $1M or more will get a higher yield with SNYXX.

SNYXX vs SWYXX Historical Performance

Since its inception, SNYXX has outperformed SWYXX by .07% on an annualized basis. This has compounded to a .23% cumulative difference over the past 3 years, which is relatively small. Currently the yield difference is about .15% however, so future performance may deviate further.

Current Yields for SWYXX & SNYXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both SNYXX and SWYXX can be found on the fund’s webpages. See here for SWYXX and here for SNYXX.

What rate is SNYXX & SWYXX paying?

The current interest rate for SNYXX, SWYXX, and other Schwab money markets can be found on Schwab’s money market page.

SWYXX & SNYXX Details

The expense ratio is .34% for the SWYXX investor shares and .19% for the SNYXX ultra shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SWYXX has no minimum investment and investors can invest as little as one cent, while SNYXX has a minimum investment of $1 million. My observation is that investors can keep SNYXX even if they sell and their balance falls below $1 million. The $1 million minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but SNYXX and SWYXX is generally only available to clients of Charles Schwab.

Like most money market mutual funds, investors can sell SNYXX or SWYXX at any time.

SWYXX & SNYXX Risks

Hypothetically, an investor could lose money with SNYXX or SWYXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SWYXX or SNYXX though.

As of June 30, 2023, the fund was composed of approximately $872 million in the investor shares and $1.3 billion in ultra shares.

IS SWYXX or SNYXX FDIC Insured?

No, neither SWYXX nor SNYXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The funds own 61% variable rate demand obligations (VRDNs) and 28% tender auction bonds, among other asset classes. 92.5% of the funds’ holdings have an effective maturity of less than one week.

High Balances

Investors allocating more than $1 million may want to consider the “ultra” share class of the fund, whose symbol is SNYXX.

Tax Considerations

SWYXX and SNYXX are municipal funds which means that they only invest in municipal-related securities. However, investors who are not in the highest marginal tax rates may be better off investing in a non-muni money market fund.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!). To the extent that an investor is subject to the “alternative minimum tax,” they may want to consider an AMT-free money market (such as SWWXX or SCTXX).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? SNYXX or SWYXX?

Overall, SWYXX is a good investment for many situations. Those investing more than $1 million should generally go with SNYXX for the higher yield. Investors who are not subject to the highest tax rates may want to consider other funds though.

Schwab offers several municipal (muni) money market mutual funds including the Schwab California Municipal Money Fund Ultra Shares (SCAXX) and the Schwab California Municipal Money Fund Investor Shares (SWKXX). Many investors ask about the differences between these two funds since they are two of the largest muni money market mutual funds in the market today. When comparing SCAXX vs SWKXX, it is clear which fund is best for most investors.

The Short Answer

SCAXX and SWKXX are two share classes of the exact same fund! There is no need to compare SCAXX vs SWKXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $1M or more will get a higher yield with SCAXX.

SCAXX vs SWKXX Historical Performance

Since its inception, SCAXX has outperformed SWKXX by .08% on an annualized basis. This has compounded to a .23% cumulative difference over the past 3 years, which is relatively small. Currently the yield difference is about .15% however, so future performance may deviate further.

Current Yields for SWKXX & SCAXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both SCAXX and SWKXX can be found on the fund’s webpages. See here for SWKXX and here for SCAXX.

What rate is SCAXX & SWKXX paying?

The current interest rate for SCAXX, SWKXX, and other Schwab money markets can be found on Schwab’s money market page.

SWKXX & SCAXX Details

The expense ratio is .34% for the SWKXX investor shares and .19% for the SCAXX ultra shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SWKXX has no minimum investment and investors can invest as little as one cent, while SCAXX has a minimum investment of $1 million. My observation is that investors can keep SCAXX even if they sell and their balance falls below $1 million. The $1 million minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but SCAXX and SWKXX is generally only available to clients of Charles Schwab.

Like most money market mutual funds, investors can sell SCAXX or SWKXX at any time.

SWKXX & SCAXX Risks

Hypothetically, an investor could lose money with SCAXX or SWKXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SWKXX or SCAXX though.

As of June 30, 2023, the fund was composed of approximately $3.7 billion in the investor shares and $11.4 billion in ultra shares.

IS SWKXX or SCAXX FDIC Insured?

No, neither SWKXX nor SCAXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The funds own 47.4% variable rate demand obligations (VRDNs), 34.8% tender auction bonds, and 12.3% commercial paper, and some smaller asset classes. 65.2% of the funds’ holdings have an effective maturity of less than one week.

High Balances

Investors allocating more than $1 million may want to consider the “ultra” share class of the fund, whose symbol is SCAXX.

Tax Considerations

SWKXX and SCAXX are municipal funds which means that they only invest in municipal-related securities. However, investors who are not in the highest marginal tax rates may be better off investing in a non-muni money market fund.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!). To the extent that an investor is subject to the “alternative minimum tax,” they may want to consider an AMT-free money market (such as SWWXX or SCTXX).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? SCAXX or SWKXX?

Overall, SWKXX is a good investment for many situations. Those investing more than $1 million should generally go with SCAXX for the higher yield. Investors who are not subject to the highest tax rates may want to consider other funds though.

Schwab offers several municipal (muni) money market mutual funds including the Schwab Municipal Money Fund Ultra Shares (SWOXX) and the Schwab Municipal Money Fund Investor Shares (SWTXX). Many investors ask about the differences between these two funds since they are two of the largest muni money market mutual funds in the market today. When comparing SWOXX vs SWTXX, it is clear which fund is best for most investors.

The Short Answer

SWOXX and SWTXX are two share classes of the exact same fund! There is no need to compare SWOXX vs SWTXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $1M or more will get a higher yield with SWOXX.

SWOXX vs SWTXX Historical Performance

Since its inception, SWOXX has outperformed SWTXX by .12% on an annualized basis. This has compounded to a 2.89% cumulative difference over the past 20 years, which is relatively small. Currently the yield difference is about .15% however, so future performance may deviate further.

Current Yields for SWTXX & SWOXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both SWOXX and SWTXX can be found on the fund’s webpages. See here for SWTXX and here for SWOXX.

What rate is SWOXX & SWTXX paying?

The current interest rate for SWOXX, SWTXX, and other Schwab money markets can be found on Schwab’s money market page.

SWTXX & SWOXX Details

The expense ratio is .34% for the SWTXX investor shares and .19% for the SWOXX ultra shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SWTXX has no minimum investment and investors can invest as little as one cent, while SWOXX has a minimum investment of $1 million. My observation is that investors can keep SWOXX even if they sell and their balance falls below $1 million. The $1 million minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but SWOXX and SWTXX is generally only available to clients of Charles Schwab.

Like most money market mutual funds, investors can sell SWOXX or SWTXX at any time.

SWTXX & SWOXX Risks

Hypothetically, an investor could lose money with SWOXX or SWTXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SWTXX or SWOXX though.

As of June 30, 2023, the fund was composed of approximately $3.7 billion in the investor shares and $11.4 billion in ultra shares.

Is SWTXX or SWOXX FDIC Insured?

No, neither SWTXX nor SWOXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The funds own 61% variable rate demand obligations (VRDNs), 17% tender auction bonds, and 11.6% commercial paper, and some smaller asset classes. 89.4% of the funds’ holdings have an effective maturity of less than one week.

High Balances

Investors allocating more than $1 million may want to consider the “ultra” share class of the fund, whose symbol is SWOXX.

Tax Considerations

SWTXX and SWOXX are municipal funds which means that they only invest in municipal-related securities. However, investors who are not in the highest marginal tax rates may be better off investing in a non-muni money market fund.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!). To the extent that an investor is subject to the “alternative minimum tax,” they may want to consider an AMT-free money market (such as SWWXX or SCTXX).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? SWOXX or SWTXX?

Overall, SWTXX is a good investment for many situations. Those investing more than $1 million should generally go with SWOXX for the higher yield. Investors who are not subject to the highest tax rates may want to consider other funds though.

Schwab offers several Treasury money market mutual funds including the Schwab US Treasury Money Fund Ultra Shares (SUTXX) and the Schwab US Treasury Money Fund Investor Shares (SNSXX). Many investors ask about the differences between these two funds since they are two of the largest Treasury money market mutual funds in the market today. When comparing SUTXX vs SNSXX, it is clear which fund is best for most investors.

The Short Answer

SUTXX and SNSXX are two share classes of the exact same fund! There is no need to compare SUTXX vs SNSXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $1M or more will get a higher yield with SUTXX.

SUTXX vs SNSXX Historical Performance

Since its inception, SUTXX has outperformed SNSXX by .07% on an annualized basis. This has compounded to a .22% cumulative difference over the past 3 years, which is relatively small. Currently the yield difference is about .15% however, so future performance may deviate further.

Current Yields for SNSXX & SUTXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both SUTXX and SNSXX can be found on the fund’s webpages. See here for SNSXX and here for SUTXX.

What rate is SUTXX & SNSXX paying?

The current interest rate for SUTXX, SNSXX, and other Schwab money markets can be found on Schwab’s money market page.

SNSXX & SUTXX Details

The expense ratio is .34% for the SNSXX investor shares and .19% for the SUTXX ultra shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SNSXX has no minimum investment and investors can invest as little as one cent, while SUTXX has a minimum investment of $1 million. My observation is that investors can keep SUTXX even if they sell and their balance falls below $1 million. The $1 million minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but SUTXX and SNSXX is generally only available to clients of Charles Schwab.

Like most money market mutual funds, investors can sell SUTXX or SNSXX at any time.

SNSXX & SUTXX Risks

Hypothetically, an investor could lose money with SUTXX or SNSXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SNSXX or SUTXX though.

As of June 30, 2023, the fund was composed of approximately $15 billion in the investor shares and $17 billion in ultra shares.

Is SNSXX or SUTXX FDIC Insured?

No, neither SNSXX nor SUTXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The funds own 100% Treasury debt. Since Treasuries are so liquid, the funds holdings have a longer average maturity than many money markets. Only 16.7% of the fund has a maturity of less than a week and only ~37% of the holdings mature in less than one month.

High Balances

Investors allocating more than $1 million may want to consider the “ultra” share class of the fund, whose symbol is SUTXX.

Tax Considerations

SNSXX and SUTXX are Treasury funds which means that they only invest in Treasuries. However, taxable investors may find better after-tax yields in municipal (muni) money market funds, which offer tax benefits that may improve investors’ after-tax yield.

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? SUTXX or SNSXX?

Overall, SNSXX is a good investment for many situations. Those investing more than $1 million should generally go with SUTXX for the higher yield. Investors who are subject to high tax rates may want to consider other funds though.

Schwab offers two government money market mutual funds: the Schwab Government Money Fund Ultra Shares (SGUXX) and the Schwab Government Money Fund Investor Shares (SNVXX). Many investors ask about the differences between these two funds since they are two of the largest government money market mutual funds in the market today. When comparing SGUXX vs SNVXX, it is clear which fund is best for most investors.

The Short Answer

SGUXX and SNVXX are two share classes of the exact same fund! There is no need to compare SGUXX vs SNVXX because the only difference is the minimum initial investment amount and the expense ratio. Investors who can make an initial purchase of $1M or more will get a higher yield with SGUXX.

SGUXX vs SNVXX Historical Performance

Since its inception, SGUXX has outperformed SNVXX by .08% on an annualized basis. This has compounded to a .22% cumulative difference over the past 3 years, which is relatively small. Currently the yield difference is about .15% however, so future performance may deviate further.

Current Yields for SNVXX & SGUXX

The current 7 day yield is a standardized yield metric for money market mutual funds and the 7 day yields for both SGUXX and SNVXX can be found on the fund’s webpages. See here for SNVXX and here for SGUXX.

What rate is SGUXX & SNVXX paying?

The current interest rate for SGUXX, SNVXX, and other Schwab money markets can be found on Schwab’s money market page.

SNVXX & SGUXX Details

The expense ratio is .34% for the SNVXX investor shares and .19% for the SGUXX ultra shares. Since the funds are just different share classes of the same portfolio, this difference in expenses is what accounts for the differences in yield and performance. Neither fund charges a load or 12b-1 fees.

SNVXX has no minimum investment and investors can invest as little as one cent, while SGUXX has a minimum investment of $1 million. My observation is that investors can keep SGUXX even if they sell and their balance falls below $1 million. The $1 million minimum seems to only apply to the initial purchase.

I have not checked every brokerage, but SGUXX and SNVXX is generally only available to clients of Charles Schwab.

Like most money market mutual funds, investors can sell SGUXX or SNVXX at any time.

SNVXX & SGUXX Risks

Hypothetically, an investor could lose money with SGUXX or SNVXX, but I personally do not think that is a realistic risk as I believe the fund sponsor or the federal government would intervene if that were about to happen. Technically, it is possible to lose money in SNVXX or SGUXX though.

As of June 30, 2023, the fund was composed of approximately $17 billion in the investor shares and $13 billion in ultra shares.

Is SNVXX & SGUXX FDIC Insured?

No, neither SNVXX nor SGUXX are FDIC insured.

Holdings

The two funds are share classes of the same portfolio, so the holdings are identical. The largest holding is repurchase agreements (repos) at 75.5%, followed by government agency debt at 21.6%. The vast majority of the fund’s holdings have a maturity of less than one week (87%).

High Balances

Investors allocating more than $1 million may want to consider the “ultra” share class of the fund, whose symbol is SGUXX.

Tax Considerations

SNVXX and SGUXX are government funds which means that it can invest in government-backed financial instruments. However, taxable investors may find better after-tax yields in Treasury-only (such as SNSXX or SUTXX) or municipal (muni) money market funds, which offer tax benefits that may improve investors’ after-tax yield.

Government and Treasury Money Market Funds

Most states have an income tax. However, interest from Treasuries is exempt from state tax. Therefore, investors in states with income tax may be better off with a government or a Treasury money market fund that invests a greater proportion of its assets in state tax-exempt securities (such as Treasuries).

Muni Money Market Funds

Investors subject to higher tax rates may consider municipal (muni) money market funds due to the fact the interest is typically exempt from federal income tax (and often from state tax too!).

The caveat with muni money market funds though is that the yields can move up and down A LOT. Therefore, the stated yield that an investor looks up on any given day is not necessarily indicative of the future return. To understand why, read my post on muni money market yields.

Rather than expecting a muni money market fund’s stated yield, I encourage investors to expect the trailing average yield (over the past few weeks). Generally speaking, the after tax returns of munis will only be higher than non-muni money markets for those in the highest tax brackets.

Which is Best? SGUXX or SNVXX?

Overall, SNVXX is a good investment for many situations. Those investing more than $1 million should generally go with SGUXX for the higher yield. Investors who are subject to high tax rates may want to consider other funds though.