Alternatives for cash (Fidelity)

[hotwired]

Hello,
I'm holding some of my portfolio in cash. Like 5%. At Vanguard, I put it in Vanguard short term investment grade but I'm not sure where to go with my Fidelity ROTH. Does Fidelity have a short term bond fund that will give me 2% yield more or less and have a super low expense ratio? Doesn't Fidelity waive all charges on its mutual funds (vs. ETFs) -- I won't be insulted if you call me out on my research laziness ... I thought these questions could be answered with 5-8 mouse clicks but I'm actually having a hard time getting them. Just looking for a place ALMOST as safe as cash with super low expense ration and 100% liquidity.

Thank you!

 

[Senator]

There are many ETFs that Fido offers for $0 transaction fees. Fido has a ETF search tool.

 

[racy]

Fidelity Taxable Bond Funds Short-Term Performance

Click on Investment Category column and it'll sort for ya.

 

[nwsteve]

You can purchase VCSH etf--Vanguard ST bond fund ETF--same as the mutual fund for 4.95(?) to get the 2.18%. This ETF isstill one of the best choice I have found for ST money.
Alternatively if you want near zero risk, Fidelity's money market fund is yielding 1% SPRXX.

 

[pb4uski]

Why would one put cash/MM in a Roth?

 

[nwsteve]

Why would one put cash/MM in a Roth?

cuz he is a market timer? Or wants little risk in his portfolio. Just answered his question, not the one he should have asked ;-)

 

[Red Badger]

You can purchase VCSH etf--Vanguard ST bond fund ETF--same as the mutual fund for 4.95(?) to get the 2.18%. This ETF isstill one of the best choice I have found for ST money.
Alternatively if you want near zero risk, Fidelity's money market fund is yielding 1% SPRXX.

+1.
Short term is in the eye of the beholder.... For 2-3 months spending, we use FIDO's money market index fund. For a ~2 year horizon, we use a CD ladder - not much oomph, but near zero risk. But as a SHTF backstop, we keep about a year in cash.

 

[nbseer]

One reason to keep some Roth money in a money market is for an emergency fund. You can take it out tax-free. Comes in handy if your old clunker finally dies, or you need a new roof.

 

[hotwired]

I didn't really put cash there. It's just the proceeds from selling a couple of positions and I'm not ready to put it to work yet. I'm sort of market timing in the essence that I feel the market is overheated on a quintile basis and so I'm holding about 10% cash across the board. (vs. 2-3% usually)