Among the many too-good-to-be-true financial stories is the Alpha Architect 1-3 Month Box ETF, known by its ticker BOXX, that offers Treasury bill yields taxed at capital gains rates. For some investors that could mean paying a 20% tax on returns rather than 37% — a “saving” that’s helped draw some $1 billion in assets to the fund.

There have also been a series of warnings. Steven Rosenthal, a senior fellow in the Urban-Brookings Tax Policy Center, thinks the tax benefits will not stand up. Elm Partners Management’s Victor Haghani and James White point out that the tax benefits will be smaller for most investors, and can even be negative. Moreover, they say that even with the full tax benefit the risk-adjusted return of BOXX is inferior to holding Treasury bills or money market funds.

QOSHE - Save Taxes With BOXX? It Is Too Good to Be True - Aaron Brown
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Save Taxes With BOXX? It Is Too Good to Be True

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13.03.2024

Among the many too-good-to-be-true financial stories is the Alpha Architect 1-3 Month Box ETF, known by its ticker BOXX, that offers Treasury bill yields taxed at capital gains rates. For some investors that........

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