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Any advice for temporary (medium term) cash holdings? FLOT? or MINT? or ...

00BY
in Fund Discussions
Any advice for using MINT, FLOT, or SHY as cash repositories. At Fidelity FLOT and SHY are available commission free. But there is some fine print that goes with it:

Free commission offer applies to online purchases of Fidelity ETFs and select iShares ETFs in a Fidelity brokerage account. Fidelity accounts may require minimum balances. The sale of ETFs is subject to an activity assessment fee (of between $0.01 to $0.03 per $1,000 of principal). iShares ETFs and Fidelity ETFs are subject to a short-term trading fee by Fidelity if held less than 30 days.


Anyone know what this activity assessment fee means?

I know these aren't money market accounts (buyer beware), but FDRXX doesn't yield anything nowadays.

Comments

  • VintageFreakVintageFreak
    I have been looking at VRP for a while, but ETF mental block holds me back. Its a floating rate preferred stock. Floating Rate and Preferred Stock separately I understand but together I'm not quite sure what to make of it.
  • davfordavfor
    You might want to take a look at FCONX since you appear to have access to Fidelity funds. It doesn't yield much...but its more than FDRXX anyway.
  • catch22catch22
    edited October 2014
    Howdy @00BY

    Here ya go on the fee thing:

    The Activity Assessment Fee is imposed by Fidelity Investments on behalf of The Securities and Exchange Commission (SEC) for executed sell orders. It is administered in an effort to defray some of the costs associated with the regulation and surveillance of the securities industry and its professionals. This fee is deducted from the proceeds of most equity and option sell orders and will be reported on trade confirmations as the Activity Assessment Fee. Fidelity uses the average price of multiple executions when calculating the regulatory fee charged by the SEC to sellers of equity securities that are traded on exchanges.

    Effective April 10, 2009, the fee is $25.70 per $1,000,000.00 of aggregate sale proceeds (principal amount of the sale X 0.0000257). The fee is rounded up to the nearest penny.

    S.E.C. info page..................http://www.sec.gov/answers/sec31.htm

    You may also consider TIP ,which is available with the others on Fido's etf list.

    Take care,
    Catch
  • VintageFreakVintageFreak
    I also own VTAPX. Swapped it after several years of owning VIPSX.
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