Which core position should I choose?

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#1

I recently opened a fidelity roth IRA and added funds to it, after buying 3 index.
I notice that it says my core position is SPAXX - FIDELITY GOVERNMENT MONEY MARKET, which states it is FDIC - FDIC-Insured Deposit Sweep Program
An interest-bearing position that is eligible for FDIC insurance.

The OTHER option is FDRXX - Fidelity® Government Cash Reserves
Your cash is invested in a mutual fund and earns daily dividends, which are paid to you monthly.

Can you explain these options and which is better?

#2

Hey @shaniquewllms!

I wrote an article for you on this topic! I’ll discuss during the next office hours too! :slight_smile:

#3

Thank you for clearing up this confusion!

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