Understanding the Bank Deposit Sweep Program
Managing legacy SPAXX and FDRXX core positions after the transition to QTNFQ
AT A GLANCE: New cash is directed to QTNFQ. Legacy SPAXX/FDRXX core positions remain available as a funding source while in “Drain” status, but new money cannot be added to those legacy positions.
How “Drain and Fill” works
Affected accounts that previously used SPAXX or FDRXX as the core position now operate under “Drain and Fill.”
- New deposits: go to QTNFQ, not SPAXX or FDRXX.
- Purchases and withdrawals: may continue to use the remaining SPAXX/FDRXX balance as a funding source.
- New money: cannot be added to the legacy SPAXX/FDRXX core position.
- Trade entry: a purchase into the legacy core fund may appear to accept in Wealthscape, but it will not complete during overnight processing.
Important: The Drain designation is not shown on the Wealthscape front end or on the client statement.
Example: legacy SPAXX position alongside the new QTNFQ core position
How balances may appear
An affected account may show SPAXX/FDRXX, QTNFQ, and the combined amount as cash available to trade or withdraw because the legacy core balance remains a funding source while it is draining.
Example: Account Balances tile showing the core sweep and non-core money market balances
If the client wants to keep investing in SPAXX
Additional money cannot be moved into SPAXX while it remains the legacy core position in Drain status. To hold SPAXX as a regular mutual fund:
1. Fully liquidate the remaining SPAXX core position; proceeds move to QTNFQ.
2. After settlement, place a mutual fund purchase for SPAXX.
After repurchase, SPAXX is a regular mutual fund position—not the core cash position. It will not automatically fund purchases, withdrawals, or checks; shares must be sold first when cash is needed.
Using another money market fund
A client may instead purchase another eligible money market fund using Cash Available to Trade. Wealthscape’s Mutual Fund Screener can be used to identify available funds and compare their characteristics.
Fidelity money market fund comparison
The table below provides a reference comparison of several Fidelity money market funds, including yield, expense ratio, minimum investment requirements, underlying holdings, and potential state-tax treatment.
For informational purposes only. This comparison should not be interpreted as an investment recommendation from ESI. Financial professionals should evaluate each client’s circumstances and review the applicable prospectus and offering materials before making a recommendation.
Quick account-review cue
If an account still holds SPAXX or FDRXX as the legacy core position, the position may not yet be fully drained. Review each account individually before taking action.
Questions?
See the ESI Bank Deposit Cash Sweep Program reference page on the NLG Resources Network or call the service line at 800-344-7437.
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