The iShares 0-3 Month Treasury Bill ETF (SGOV) currently provides a 30-day yield of about 3.54% with a very short duration, making it a near-cash option for investors. This ETF offers state-tax-exempt income from Treasury bills, which is especially beneficial for investors in high-tax states. Market conditions, including inflation concerns from the U.S.-Iran conflict and a volatile Fed rate outlook, have led some investors to shift back toward cash-like positions, with new contributions flowing into SGOV to preserve capital. Investors should verify that SGOV's dividends are correctly reported as state-tax-exempt for tax purposes, as some brokers and tax software may overlook this benefit.
The Alpha Architect 1-3 Month Box ETF (BOXX) replicates Treasury bill returns using synthetic options to deliver tax-efficient gains, avoiding ordinary income tax on interest by accumulating returns as price appreciation. This strategy benefits high ...
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 ear...
