Any opinions on FZFXX

Discussion of the Bond portion of the Permanent Portfolio

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Matthew19
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Any opinions on FZFXX

Post by Matthew19 » Mon Oct 17, 2016 12:37 pm

Fidelity looks to have this new fund, would it work for the STT?

FZFXX
Mr Vacuum
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Re: Any opinions on FZFXX

Post by Mr Vacuum » Mon Oct 17, 2016 2:52 pm

They currently hold >30% of assets in repurchase agreements. For the same expense ratio, you can get FDLXX, which holds only Treasuries. I use FZFXX as the core position in one brokerage account instead of SPAXX, but that's usually just for change.
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Matthew19
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Re: Any opinions on FZFXX

Post by Matthew19 » Mon Oct 17, 2016 2:55 pm

Ok thanks. I wonder if FZFXX is preferable to FCASH for core position in Fidelity?
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KevinW
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Re: Any opinions on FZFXX

Post by KevinW » Mon Oct 17, 2016 11:24 pm

As cash vehicles go, FZFXX looks pretty good. It "...normally invests at least 80% of the fund's assets in U.S. Treasury securities and repurchase agreements for those securities" and 80% T-bills is a pretty good proportion. It's hard to find much better. The expense ratio is high but not outrageous. I'd be comfortable using it. I didn't confirm the bit about repurchase agreements, but the reasoning is sound, so it sounds like FDLXX is a little better.
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