New York, NY – Investors seeking to optimize their after-tax wealth and stay ahead of inflation have a new tool at their disposal with the Alpha Architect 1-3 Month Box ETF (BOXX). Managed by Wesley Gray, a former US Marine Corps intelligence officer turned finance professor, this fund utilizes a unique options strategy called box spreads to earn tax-deferred returns on cash.

Unlike traditional money market funds, BOXX transforms interest income into capital gains, offering investors a way to potentially maximize their returns while minimizing their tax liabilities. This strategy allows investors to control their taxable income better, potentially leading to substantial tax savings in the long run.

By employing box spread trades on the S&P 500 (SPY) and Booking Holdings (BKNG), BOXX currently boasts an annual yield of 5.67%, with an expected net effective return of 5.48% after fees. The fund’s structure also allows investors to avoid distributing any capital gains, creating a range of possibilities to optimize their investment strategies.

One of the key advantages of BOXX is its ability to provide tax-free income until certain thresholds are met, making it an attractive option for high-net-worth individuals looking to preserve and grow their wealth. Additionally, by utilizing a unique ETF structure, BOXX offers investors the opportunity to realize long-term capital gains and exercise greater control over their investment gains.

While every investment comes with its risks, BOXX’s main risk lies in counterparty risk associated with options trading. However, with the backing of the Options Clearing Corporation (OCC), an institution deemed “too big to fail” by the Federal Reserve, this risk is considered minimal. As with any investment, potential changes in tax regulations or market conditions should also be taken into consideration when evaluating the risks associated with BOXX.

Overall, for investors looking for a low-risk strategy with long-term capital gains tax treatment, BOXX presents an innovative solution that could potentially enhance their after-tax returns and overall financial goals in 2024. Considered a game changer in the investment landscape, BOXX offers a unique opportunity for investors to optimize their wealth while navigating the complexities of the tax system.