The Alpha Architect 1-3 Month Box ETF (BOXX) targets tax efficiency by replicating short-term Treasury rates through S&P 500 options box spreads and avoiding distributions, allowing returns to compound in share price. This structure benefits high earners, especially California retirees in high tax brackets, by converting yields into long-term capital gains rather than ordinary income, significantly reducing tax bills compared to traditional money market funds or Treasury bill ETFs. While BOXX has higher fees and lacks state tax exemption, it suits ultra-high earners with taxable accounts who can hold shares beyond 12 months to maximize tax savings. Investors in low-tax states or tax-advantaged accounts may prefer cheaper alternatives like SGOV or direct Treasury holdings. The fund’s success depends on an investor’s marginal tax rate and willingness to accept regulatory and fee trade-offs for tax alpha.
The iShares 0-3 Month Treasury Bond ETF (SGOV) is highlighted as a low-risk, low-cost option for investors seeking stability and liquidity in a market with soaring valuations and unusual economic conditions. Despite rising Treasury yields, equities c...
The iShares 0-3 Month Treasury Bond ETF (SGOV) provides investors a low-risk way to earn about 3.9% yield by holding U.S. Treasury bills with maturities under 90 days. It avoids duration risk and price volatility common in longer bonds, making it sui...
