Barrett,barrett wrote: ↑Wed Oct 14, 2020 8:28 amHas Fidelity waived the .42% expense ratio on FDLXX? If so, that fund would make a lot of sense for my Fido cash position.
Fidelity responded to the Treasury yield curve collapse earlier this year by closing FDLXX to new investors and informing its investors that it would begin reimbursing expenses or waiving fees to keep FDLXX and some of its other money market funds from having a negative yield. It has since reopened to new investors, but has not reduced its expense ratio of 0.42%, among the highest of the industry.
To paraphrase Winston Churchill, I consider FDLXX to be the worst possible Treasury Money Market Fund—except for all others. Other candidates (SPAXX or VUSXX, for instance) have loaded up on unsuitable derivative securities like bank repos (supposedly collaterlized by T-bills) or agency debt ( a step down in terms of credit risk). The bottom line for me is that I use FDLXX—but I am watching them closely.