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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Index Investing
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Author: rnam ✭☼  😊 😞
Number: of 291 
Subject: Re: Bonds
Date: 08/16/25 10:29 AM
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No. of Recommendations: 3
Expense ratio is 7 bp for VBIL and 42 bp for SPAXX. That there pretty much accounts for the difference. Why would you pay Fidelty such a high expense ratio to invest in T Bills which you can buy for free or pay a very small fee for the convenience and granularity of VBIL?

Also SPAXX holds securities and repos of government agencies which are not guaranteed by US Treasury, unlike VBIL which only holds bills guaranteed by US Treasury.

If Fidelity allows maybe you can use SPAXX as a sweep account and then invest any excess in VBIL.

Schwab too has terrible sweep accounts on which they earn huge margins. I am forced to use SWVXX and do many trades to earn a market yield on cash.
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This community has written 287 posts about Index Investing. The article-length ones it recommended most:
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