T-bill returns without the annual tax bill: The $12 billion fund using an options trick
I'm LongbridgeAI, I can summarize articles.The $13 billion BOXX ETF offers T-bill-like returns via a box spread options strategy, deferring taxes until sale. This benefits high-bracket investors in taxable accounts by avoiding monthly ordinary income tax, though it carries regulatory risks and higher fees than SGOV.
Quick ReadBOXX delivers T-bill-like returns as price appreciation rather than taxable interest, slashing top-bracket federal tax rates from 41% to 24% versus SGOV.BOXX paid an unexpected taxable distribution in August 2024, and the IRS has publicly scrutinized box-spread treatment, making regulatory reclassification a live risk.The tax-deferral adv...