Alpha Architect 1-3 Month Boxx Fund (BOXX)
BATS BATS Primary 
Gift BOXX Under The Tree Brings Holiday Cheers And No Tax Fears
Alpha Architect 1-3 Month Box ETF earns a Buy rating for its innovative, tax-efficient approach to short-term interest rate exposure. BOXX uses box spreads with European-style SPX options to synthetically replicate T-bill returns, offering NAV appreciation instead of taxable interest. The fund's standout advantage is superior tax treatment, deferring gains and potentially qualifying for capital gains rates versus ordinary income.
BOXX: SA Quant's Favorite Cash ETF
BOXX, an ultrashort bond ETF, receives the highest Quant rating among 61 similar funds, despite a general Quant bias against ultrashort bonds. The ETF employs a box strategy using FLEX options from the OCC, offers attractive dividends and yield, and has a tax-advantaged structure. Overall, BOXX stands out as a compelling cash-equivalent option, especially for investors seeking T-Bill yield with tax efficiency.
BOXX: Tax Avoidance At Its Best, A Happy Holder's Story, Reiterate Buy
I reiterate a buy rating on BOXX due to its steady performance amid market volatility and tax efficiency for high-income investors. BOXX closely tracks the SPDR Bloomberg 1-3 Month T-Bill ETF and slightly outperforms it on a total return basis. BOXX's assets under management have surged from $1 billion to $6.1 billion, with low annual expense ratios and increasing trading volume.
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BOXX Vs. MUB: 2 Tax-Advantaged ETFs, 2 Very Different Strategies And Portfolios
Investors looking for tax-advantaged income or returns have generally focused on muni bonds. BOXX is a newer entrant in this space, with a very different strategy, basically synthetic t-bills. BOXX's approach results in much more stable returns, with higher returns in the past.
Give Yourself A Tax Cut
Simplify personal finances to balance a volatile professional life; prioritize tax efficiency and simplicity. Maximize tax-advantaged accounts and strategies like IRAs, 401(k)s, 529 plans, PPLI, and QOFs to minimize taxes. Utilize tax-efficient investments like the Alpha Architect 1-3 Month Box ETF (BOXX) for cash allocation and leverage for deductible expenses.
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Wall Street was in the red on Tuesday as strong economic data dampened chances of near-term Fed rate cuts. Defensive ETFs may help in this scenario.
BOXX: Do Not Confuse Cash And Cash-Like Return
Alpha Architect 1-3 Month Box ETF aims to match/exceed 1-3 month U.S. Treasury Bills but carries inherent options market risks. Arbitrage activities may fail during financial distress, making BOXX unreliable as a cash equivalent compared to SPDR T-Bill ETF. BOXX offers tax benefits, but these are minor and do not justify the risks for emergency funds or cash equivalents.
BOXX: Understanding The Fund's First Distribution
BOXX ETF offers a unique value proposition by using box spreads for low-risk returns and tax efficiency, similar to short-term treasury ETFs. Despite its tax-deferred design, BOXX paid a distribution, introducing a minimal tax liability but diminishing its value proposition. BOXX's expense ratio is higher than other options, but a current fee waiver reduces costs temporarily.
BOXX: Cash-Alternative ETF, 5.6% Options Yield, Risks Abound
BOXX achieves similar returns to t-bills through options. BOXX's investors can generally defer their taxes until a moment of their choosing, paying capital gain rates when they sell. Although the fund is a solid choice, Federal Reserve cuts should significantly decrease returns and after-tax yields in the coming months.
BOXX: A Clever Treasury Bill Return Replicator Without Taxable Liabilities
Alpha Architect 1-3 Month Box ETF offers tax-efficient returns that replicate Treasury bill returns through a complex options trading strategy. BOXX has nearly $2.53 billion in assets under management and has performed well since its launch in December 2022. BOXX provides cash-like returns with minimal risk, making it an attractive alternative to money market funds and short-term bond ETFs. However, its complexity and lack of income distribution may not be suitable for all investors.
