SGOV vs SPAXX

SPAXX is the default cash sweep for many Fidelity accounts; SGOV is a Treasury bill ETF. They solve the same problem, parking cash, in different ways.

By the SGOVResource.com editorial team Last reviewed Oct 24, 2026 Data refreshed Oct 24, 2026 How we calculate Editorial policy

Short answer: SPAXX is a money market mutual fund that aims to keep a $1.00 share price and acts as Fidelity’s automatic cash position. SGOV is an ETF you buy and sell during market hours. SGOV’s expense ratio (0.09%) is lower than SPAXX’s (0.42%), and because SGOV holds Treasury bills directly, more of its income is usually exempt from state tax. SPAXX wins on convenience: no trades, no price movement, and instant availability for purchases in a Fidelity account.

SGOV vs SPAXX side by side

SGOV vs SPAXX key facts
	SGOV iShares 0-3 Month Treasury Bond ETF	SPAXX Fidelity Government Money Market Fund
Type	Exchange-traded fund	Money market mutual fund (often the default core position in Fidelity accounts)
Provider	iShares (BlackRock)	Fidelity
What it holds	US Treasury bills	US government securities and repurchase agreements backed by them
Maturity / rate reset	0–3 months (ICE 0-3 Month US Treasury Securities Index (USD)); weighted avg. 0.12 yrs	Very short; regulated under SEC Rule 2a-7
Expense ratio	0.09% (issuer, auto-updated)	0.42% (secondary source — verify)
Current yield	3.76% 30-day SEC yield (Oct 22, 2026)	See issuer page (we don’t show peer yields without a licensed live source)
Income paid	Monthly	Accrues daily, paid monthly
Price behavior	Trades on an exchange near $100; rises slowly through the month, drops on each ex-date.	Seeks to keep a stable $1.00 share price; trades at end of day like a mutual fund, not on an exchange.
State income tax	95.14% of 2025 income came from US government obligations (iShares); generally state-exempt in most states.	Only the share of income from direct US government obligations is state-exempt; repo income generally is not. Fidelity publishes the percentage yearly.
Protection	Not FDIC insured. Holdings backed by the full faith and credit of the US government; shares can lose value.	Not FDIC insured. A money market fund can lose money, though it seeks to preserve $1.00 per share.

SGOV figures: iShares, retrieved Oct 24, 2026. SPAXX figures: Fidelity, checked Oct 24, 2026. Verify current figures with each provider before investing.

Where they really differ

1. Convenience and settlement

SPAXX requires no action: cash in a Fidelity account sits there automatically and is available to buy other securities immediately. SGOV must be bought and sold like a stock during trading hours, and sale proceeds settle on the next business day (T+1). For money you move frequently, that friction is real.

2. Fees

SGOV’s fee is a fraction of SPAXX’s. On short-term cash, a fee gap of roughly a third of a percent is a large share of the total yield, which is why many investors with sizeable cash balances look at T-bill ETFs.

3. State taxes

iShares reported that 95.14% of SGOV’s 2025 income came from US government obligations. Government money market funds that hold a large share of repurchase agreements typically report a lower percentage. In a state with a high income tax this can be the biggest difference of all. Use the after-tax yield calculator with each fund’s figures.

4. Price stability

SPAXX seeks to hold a stable $1.00 per share. SGOV’s price moves by cents: it rises slowly during the month and drops when the distribution is paid. Over any holding period of more than a few weeks, that pattern nets out in SGOV’s total return.

Frequently asked questions

Should I move money from SPAXX to SGOV?

It depends on your state tax rate, how often you need the cash, and the current yields. SGOV usually has a lower expense ratio and more state-exempt income, which can mean higher after-tax income in high-tax states. SPAXX is simpler: it holds a stable $1.00 price, settles instantly as your Fidelity core position, and needs no trading. This is not a recommendation; compare your own after-tax numbers.

Is SPAXX income state tax exempt?

Partly. SPAXX holds repurchase agreements as well as government securities, and repo income is generally not exempt from state tax. Fidelity publishes the percentage of income from US government obligations each year. SGOV holds Treasury bills directly, so a higher share of its income is typically exempt.

Can I buy SGOV at Fidelity?

Yes. SGOV is an exchange-traded fund and can be bought in a Fidelity brokerage account like any stock or ETF. Fidelity does not charge a commission for online US ETF trades at the time of writing. See how to buy SGOV.

What’s the difference between SPAXX’s 7-day yield and SGOV’s SEC yield?

Money market funds report a 7-day yield; ETFs like SGOV report a 30-day SEC yield. Both are annualized and net of expenses, but they cover different periods, so they can diverge briefly when rates change.

Educational information only. SGOVResource.com is independent and not affiliated with BlackRock or iShares. Nothing here is a recommendation to buy or sell any security or individualized tax advice. Estimates depend on the assumptions shown and actual results will differ. Read the fund’s prospectus before investing. Disclaimer.