Wealthy PotVMFXX vs SPAXX (2026)
The two biggest brokerage settlement funds head-to-head. VMFXX (Vanguard) and SPAXX (Fidelity) are both government funds that auto-sweep your cash, but VMFXX’s much lower fee typically gives it a higher net yield. In practice you use whichever matches your brokerage; this comparison is really Vanguard vs Fidelity for where your cash lives.
By Wealthy Pot · Last updated September 2026
| Feature | VMFXX | SPAXX |
|---|---|---|
| Provider | Vanguard | Fidelity |
| Wrapper | Money-market fund | Money-market fund |
| Holdings type | Government | Government |
| 7-day SEC yield | 3.63% (7-day SEC yield) | 3.34% (7-day SEC yield) |
| Share price | Stable $1.00 NAV (targeted, not guaranteed) | Stable $1.00 NAV (targeted, not guaranteed) |
| Expense ratio | 0.11% | 0.42% |
| Minimum | $0 (as the settlement fund; $3,000 standalone) | $0 |
| State tax | Partly state-tax-exempt (66.6% U.S. government obligations, 2025, met the CA/CT/NY threshold) | Partly state-tax-exempt (50.9% U.S. government obligations, 2025, below the CA/CT/NY threshold) |
| Auto-sweep? | Yes, the Vanguard brokerage settlement fund | Yes, a default core/sweep position at Fidelity |
| Best for | Vanguard investors: it is the default settlement fund and very cheap | Fidelity customers who want their idle cash to earn a yield automatically |
Where VMFXX wins
- The Vanguard brokerage settlement fund: cash lands here automatically
- A very low 0.11% expense ratio, so a high net yield
- Government fund with lower credit risk
- Portion of income is state-tax-exempt
Where SPAXX wins
- The default Fidelity core/sweep position: idle cash earns automatically
- No minimum investment
- Government fund (holds government debt and repos), lower credit risk than prime
- Portion of income is state-tax-exempt
Which should you choose?
The two biggest brokerage settlement funds head-to-head. VMFXX (Vanguard) and SPAXX (Fidelity) are both government funds that auto-sweep your cash, but VMFXX’s much lower fee typically gives it a higher net yield. In practice you use whichever matches your brokerage; this comparison is really Vanguard vs Fidelity for where your cash lives.
Compare these against every fund in our money-market fund comparison.
We summarize the funds' published facts, not user reviews. Yields are variable, change daily, and are re-checked against each fund's official page. Neither money-market funds nor ETFs are FDIC-insured, and an ETF's share price can fall as well as rise. Some outbound links may be affiliate links. That never affects our comparisons. Nothing here is financial advice.