Cash is still paying over 4 percent and these 3 ETFs squeeze out more after-tax yield than any money market
I'm LongbridgeAI, I can summarize articles.With cash yields over 4%, high-tax investors can boost after-tax returns using three ETFs: BOXX converts T-bill returns to capital gains for federal tax efficiency; JAAA offers higher yield via AAA CLO tranches; and TFLO provides state tax-exempt Treasury floaters. These strategies address the erosion of money market yields by taxes, offering alternatives tailored to specific investor profiles.
Quick ReadBOXX converts T-bill returns into long-term capital gains taxed at 20% instead of 37%, while JAAA pays 4.95% from AAA-rated CLO tranches.TFLO's Treasury floaters are exempt from state and local taxes, delivering up to 130 extra basis points for California and New York residents.Taxes can strip a third or more from money market distributio...