BOXX offers a tax-deferred 5.5% yield for investors. Sometimes you'll ponder a question for years and then find the answer when you least expect it. Reading Bloomberg last week on a slow weekday afternoon, I found an interesting fund that solves a puzzle I'd worked on for a long time. The fund is the Alpha Architect 1-3 Month Box ETF (BATS: BOXX ).
How is Boxx better than a money market fund?
BOXX's underlying trades currently sport an annual yield of 5.67%, minus 0.19% in annual fees, for a net effective expected return of 5.48%. So how is this better than a money market fund? By using a box spread, we've just transformed interest income into capital gains.
Is Boxx ETF a good investment?
BOXX ETF solves a massive tax problem that has plagued low-risk investments for decades. Check out the reasons why BOXX is my top pick.
