A better idea is to make use of tax deferred accounts. Roth, 401k, HSA, etc before you even think about this. Don't invest in anything you can't understand and certainly not anything more than you can afford to risk.
@@OptimizedPortfolio You have to remember the main reason you buy Treasuries is to avoid counterparty risk, at least limit it to the full faith and credit of the US Government. To go around that and add multiple layers of counterparties and then not be compensated for it except for the ability to defer taxes is asinine. It reeks of 2008.
@@ThePeterDislikeShow The main reason to buy treasuries is certainly not to simply "avoid counterparty risk." If we mean T-bills or other cash equivalents, it's usually to avoid price risk. Counterparty risk is often immaterial unless we're talking about illiquid instruments. The OCC also existed during/through 2008. "Not be compensated for it?" Box spread premium + tax savings can be substantial. I explained ALL this in the video already. Don't get me wrong; people should definitely understand what they're buying and the risks involved. But "asinine?" I guess all those people who have put $3B+ into BOXX are just stupid.
I'm holding about a third of our Emergency Fund in it right now. As time goes on, I'm likely to build that position. I like the tax-efficient nature of BOXX.
Thank you, this is a god send for me! I have almost 80K in capital gain losses and recently, left a money manager charging 1.5%. He made 14K in my time with him, I made 3K :) when I left I left with only cash in all accounts. I will go slowly into ETFs over the next several months and will have a large cash holding that I can now use BOXX to use my Capital gain losses. From you video, it sounds like BOXX is risk free and in my case tax free for a while. :)
You're the 2nd person who has mentioned long term capital losses and how this strategy helps with that. I don't follow at all. Could you break it down a bit more? Cheers
@@digilifepro It's usually better to claim your losses as quickly as you can, which requires capital gains if they are over $3,000. If you hold BOXX for a year and sell (and buy right back into) you will get long term cap gains to claim losses against.
I did the same today! So happy that I finally found something like this! I kept asking and looking around and only today I was able to dump my BIL to get this. As I am not a US Person I lose a massive percentage as witheld tax for dividends. No tax on capital gains in my country. Much better.
Great explanation.. Not sure if I got everything (Brazilian here), but my main reason to think about BOXX is that we pay 30% on every dividend paid by every ETF... If the ETF intent to 'not pay anything on dividend' with the same tflo/sgov ETFs, I think I have a new favorite... 😉 I'll research a bit more about it... Thanks a lot
I also thought about Irish ETFs but my current broker doesn't have them and I'd have to move to Interactive Brokers and it would be a pain in the a...... :)
@@ThePeterDislikeShow That's what he's getting at. T-bills make more sense in his situation because they're exempt from state taxes, whereas cap gains from BOXX would not be.
Great question, Daniel. I forgot to explicitly mention that in the video. We would indeed expect the return of BOXX to rise and fall with T-bills yield. Check out the graph at 4:17 showing that box spread rate closely following T-bill rates. Like I noted, we would expect it to always be a little bit higher.
My income from all sources is below the government threshold of $47K so I pay 0% capital gains taxes. And still aggressively investing at 62 years young.
Thanks for the interesting content John! It’s potentially an interesting ETF….I might look at the what advantages/downside there is to just implementing the underlying strategy vs the ETF
@@OptimizedPortfolio After reviewing the underlying strategy, I think it makes sense to just own the ETF at 20 bips when level of effort and options fees are considered. State tax (CA) is a factor for me, so that makes it less attractive vs SGOV,TFLO etc.....but I was unaware of the ETF and appreciate the info. I think it has a good bit of utility for short term cash needs.
Sounds good but wrapping my head around it is another story. If I don't understand exactly what's happening with my emergency fund I'm not gonna risk it.
Great review - next, how about a review of CAOS? That holds 60% or so of BOXX and takes the other 40% and buys deep out of the money puts on the S&P, thereby providing tail protection. In good times, gives you 60% of BOXX, but then added oomph in case of quick market drawdowns. For investors who use cash holdings as a dry powder fund, makes a lot of sense! If you need a place to store cash, BOXX is my choice, too, but taking it one step farther, iof you need a place to store cash in order to buy equities at opportune times, CAOS it is.
Forgot to tag you on Twitter. You might enjoy my newest video from a risk parity perspective: czcams.com/video/i2nGUaWpUzs/video.htmlsi=YJslAhfCDTrYvamq
@@OptimizedPortfolio Thanks! I like the desert portfolio, but... I'd lever it up! 15% GDE, 30% EDV, 30% RSBT and 25% RSST, to make it 38% stocks, 60% bonds (with more duration risk), 55% trend and ~13% gold. same basic portfolio, but +68% extra leverage. That 3:6:1 is a really sturdy frame on which to build.
Interesting product. A few unrelated questions, thoughts maybe: If Uncle Sam understands the ETF's purpose, is there any risk of them regulating a fund like this out of business? The government likes their money. Point 2, if/when interest rates drop, will anybody care about any of these options anymore? In other words, is the money savings for a short period of time worth the effort? Seriously considering despite the comments above. Appreciate all thoughts, thanks!
I know this is about tax savings but just for the info I ran BOXX v SGOV thru ETF Return Calc for Jan 2023 - present and you get: SGOV = 5.23% Return BOXX = 5.12% Return Pretty close then add in tax strategy, looks good! Cheers
Is ETF Return Calc a particular tool? I'm getting different results with PV as I showed in the video: www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=5cmgcNQyxCBsKdC15MCaJG
@@rlmint Again, BOXX has less of an edge for high tax states, so consult your tax professional on the comparison. BIL is basically the same thing as SGOV but with a higher fee.
Hey! Thanks for highlighting this great tool Against SGOV, it has tax benefits cause you save the 30% of the dividend distribution? (Im not a US investor, I believe I cannot avoid paying that 30% tax over dividends) :)
I was in this ETF before but this brought me to your CZcams channel. Do you have securities you recommend that have similar structure, the only big diversified non-dividend stocks that come to mind are Berkshire Hathaway, are there others you recommend or ETFs for that matter?
remembered the article you wrote about investing the emergency fund. Substituting BOXX for VGSH, gives higher CAGR and Share ratio. Only a year's worth of data so probably not important.
Good point. I may incorporate it in there, or I may just leave that one to be pretty simple and approachable. BOXX alone is arguably hard enough to wrap one's head around. VGSH is also longer than T-Bills, though.
Would BOXX have a noticeable impact over a HYSA or SGOV for those not in a high tax bracket ? Or would it be close to a wash due to the lower income tax rates ?
Great question. Definitely! Consider someone making about $40k/yr. In 2024, their marginal tax rate on HYSA or SGOV distributions would be 12%, but LTCG rate for that person would be zero. Suppose $1,000 in effective interest over 1 year. HYSA or SGOV would incur a tax bill of $120, even if it's just reinvested. BOXX would [hopefully] have no distributions (like for 2023) and if the investor wanted to realize gains, their LTCG rate again is zero, so zero taxes.
What however could be the changes if and when rates start to lower on the 4 week T-Bills. I see in just the past week a major change of over a point plus in the 8 week against the 4 week. This is as of 8/5/2024. What would the expect ROR be in a declining or rapidly declining rate environment?
@@OptimizedPortfolio I wasn't clear. It's an instrument that is highly parallel to the T-Bill rate as you expressed. This product was brought to my attention this morning by a friend. I have around 250k in Capital losses I'm still carrying and at 3k a year my grandchildren wouldn't benefit from the inheritance of those loses (if such were the case). After watching a few other vid on BOXX following this one, I don't really see the advantages I suppose. Largely because of the cautionary warning someone pointed out in a vid with raising the red flag with the lack of clarity in absolute treatment by the IRS. Could you please re-state the reasoning to do BOXX vs. T--Bills which my wife and I started doing last year. There are trade offs. Boxx is claimed to be treated as a Captial Gain. If that were in concrete that would be great. However with T-bill they offer favorable overall tax benefits of only Federal. BOXX also has it's fees and there was suggestion it will be going higher. Lastly I get the feel with the relative lack of history with this product it feels like something quickly put together for a moment in time to compete with the T-bill gig.
@@OptimizedPortfolio Yes, based on 60% long term and 40% short term CG, which is what I thought you said. Federal 22% marginal, 15% LTCG, 6.8% state, bumping up to 7.85% state.
The 60/40 is for any distributions, so I guess it comes down to whether or not BOXX is able to avoid them, which we can't know for sure ahead of time. But that's the plan. It had no distributions for 2023. If you could hold for a year, then anything you sell would just be LTCG. But of course you might need your emergency fund within a year. So a murkier comparison indeed.
@@OptimizedPortfolio assuming 100% LT, 15%+6.8%=21.8%, vs 22% (tbills are state tax exempt), so if there are 0 short term gains and I manage to stay out of the 7.85% bracket, a 0.2% gain is best case.
Unless I'm missing something, I think SGOV would be better in the short term and BOXX for the long term. Also one for tax advantage and the other for taxable
A closer toss up over the short term, but BOXX still probably comes out ahead due to its ability to avoid distributions. At worst, STCG would be at one's marginal tax rate, same as SGOV's interest.
Thanks John, but what about tracking error stemming from both 1) drift between the S&P and the risk-free rate and 2) drift between the spread and the underlying S&P value? The S&P won’t perfectly approximate the risk-free rate nor will the spread perfectly approximate the S&P’s movement over the same period, right?
While I'm certainly usually a fan of understanding what you're buying and why you're buying it, recognize that you don't need to understand calls or puts in order to benefit from this fund. That's why it was created - so that investors don't have to go manually implement box spreads on their own.
Optimized Portfolio:This is what a Roth IRA is. Also Optimized Portfolio: BOXX is an arbitrage investment in a wrapper you can spend a weekend attempting to understand. Hey I'm not complaining its this sudden depth that I like about the channel !
Thanks for watching! Remember though that a Roth IRA incurs penalty and taxes on early withdrawal of earnings, so not really the same thing, though one could arguably use their Roth contributions as an emergency fund.
Circling back here, I realize I must have misunderstood the joke you were going for originally. I like it! 😂But yes I've thought about that exact thing, like I wonder if the "What is a Roth IRA?" video viewer cares about the BOXX video and vice versa. But I do want to have a range of content for both novices and seasoned investors.
HIGH is selling call spreads on gold miners, Chinese internet stocks, oil and gas companies, and the Russel 2000. Definitely not "almost no risk," and I wouldn't call it less complicated than box spreads either.
As the other user noted, HIGH is arguably more complicated and certainly riskier than BOXX. It also throws off distributions monthly, and here with BOXX the main benefit is the tax efficiency. HIGH's 30 days SEC yield is also 4.82% as of January 2024, which is less than SGOV.
What do you think of the new BOXX ETF from Alpha Architect? Do you own it? Are you planning to buy it?
A better idea is to make use of tax deferred accounts. Roth, 401k, HSA, etc before you even think about this. Don't invest in anything you can't understand and certainly not anything more than you can afford to risk.
@@ThePeterDislikeShow Sure, but a savings account and cash equivalents are entirely different from retirement accounts, which are inherently illiquid.
@@OptimizedPortfolio You have to remember the main reason you buy Treasuries is to avoid counterparty risk, at least limit it to the full faith and credit of the US Government. To go around that and add multiple layers of counterparties and then not be compensated for it except for the ability to defer taxes is asinine. It reeks of 2008.
@@ThePeterDislikeShow The main reason to buy treasuries is certainly not to simply "avoid counterparty risk." If we mean T-bills or other cash equivalents, it's usually to avoid price risk. Counterparty risk is often immaterial unless we're talking about illiquid instruments. The OCC also existed during/through 2008.
"Not be compensated for it?" Box spread premium + tax savings can be substantial. I explained ALL this in the video already.
Don't get me wrong; people should definitely understand what they're buying and the risks involved. But "asinine?" I guess all those people who have put $3B+ into BOXX are just stupid.
I'm holding about a third of our Emergency Fund in it right now. As time goes on, I'm likely to build that position. I like the tax-efficient nature of BOXX.
Awesome, thanks for sharing, John! I'm going to start building a position as well.
Thank you, this is a god send for me! I have almost 80K in capital gain losses and recently, left a money manager charging 1.5%. He made 14K in my time with him, I made 3K :) when I left I left with only cash in all accounts. I will go slowly into ETFs over the next several months and will have a large cash holding that I can now use BOXX to use my Capital gain losses. From you video, it sounds like BOXX is risk free and in my case tax free for a while. :)
Glad it helped!
You're the 2nd person who has mentioned long term capital losses and how this strategy helps with that. I don't follow at all. Could you break it down a bit more? Cheers
@@digilifepro I believe this person is referring to tax loss harvesting: czcams.com/video/i6GW7ONm168/video.html
Thank you for covering this topic. Great topic for people that that have accumulated long term loss carry forward and are limited to $3000 per year.
Indeed, Danny. Thanks for watching!
Could you elaborate on how this strategy relates to long term carry forward losses? Thx
@@digilifepro It's usually better to claim your losses as quickly as you can, which requires capital gains if they are over $3,000. If you hold BOXX for a year and sell (and buy right back into) you will get long term cap gains to claim losses against.
@@digilifepro Realizing gains that would just be offset by losses. You can read more here: www.bogleheads.org/forum/viewtopic.php?t=410602
I did the same today! So happy that I finally found something like this! I kept asking and looking around and only today I was able to dump my BIL to get this. As I am not a US Person I lose a massive percentage as witheld tax for dividends. No tax on capital gains in my country. Much better.
Thanks for sharing!
@@OptimizedPortfolio Finding BOXX ETF (from another site, but I found your video shortly after) brought me joy. 🥰
Glad to hear it!
Great explanation.. Not sure if I got everything (Brazilian here), but my main reason to think about BOXX is that we pay 30% on every dividend paid by every ETF... If the ETF intent to 'not pay anything on dividend' with the same tflo/sgov ETFs, I think I have a new favorite... 😉 I'll research a bit more about it... Thanks a lot
I also thought about Irish ETFs but my current broker doesn't have them and I'd have to move to Interactive Brokers and it would be a pain in the a...... :)
Someone have been watching Otávio Paranhos... 😂
@@fpivi actually I've seen a couple of his videos... 😉
Thanks for sharing!
I wish this worked for me, but since I'm in California it makes more sense just to invest in t-bills as state tax does exist
Indeed. Thanks for sharing, Kyle.
You realize that treasuries don't have local taxes right?
@@ThePeterDislikeShow That's what he's getting at. T-bills make more sense in his situation because they're exempt from state taxes, whereas cap gains from BOXX would not be.
Saw your ad on Reddit, well explained.
Thanks!
Is the return on boxx expected to rise or fall when the yield on T-bills rises and falls, or is the box spread return independent of interest rates?
Great question, Daniel. I forgot to explicitly mention that in the video. We would indeed expect the return of BOXX to rise and fall with T-bills yield. Check out the graph at 4:17 showing that box spread rate closely following T-bill rates. Like I noted, we would expect it to always be a little bit higher.
My income from all sources is below the government threshold of $47K so I pay 0% capital gains taxes. And still aggressively investing at 62 years young.
Thanks for sharing! Good luck!
Could you please do a video detailing how to borrow money using box spreads?
Thanks for the suggestion!
Thanks for the interesting content John! It’s potentially an interesting ETF….I might look at the what advantages/downside there is to just implementing the underlying strategy vs the ETF
Glad you found it interesting! Sounds like a great idea!
@@OptimizedPortfolio After reviewing the underlying strategy, I think it makes sense to just own the ETF at 20 bips when level of effort and options fees are considered. State tax (CA) is a factor for me, so that makes it less attractive vs SGOV,TFLO etc.....but I was unaware of the ETF and appreciate the info. I think it has a good bit of utility for short term cash needs.
@@surfrduede Thanks for sharing!
Sounds good but wrapping my head around it is another story. If I don't understand exactly what's happening with my emergency fund I'm not gonna risk it.
Can't argue with that, Joseph!
I love BOXX. I currently have my short term treasury allocation split equally between VGSH and BOXX.
Thanks for sharing!
Great review - next, how about a review of CAOS? That holds 60% or so of BOXX and takes the other 40% and buys deep out of the money puts on the S&P, thereby providing tail protection. In good times, gives you 60% of BOXX, but then added oomph in case of quick market drawdowns. For investors who use cash holdings as a dry powder fund, makes a lot of sense! If you need a place to store cash, BOXX is my choice, too, but taking it one step farther, iof you need a place to store cash in order to buy equities at opportune times, CAOS it is.
Been meaning to get around to CAOS for a while.
@@OptimizedPortfolioI'd appreciate a video reviewing CAOS
@@Crud_3 On my list to get to at some point!
Forgot to tag you on Twitter. You might enjoy my newest video from a risk parity perspective: czcams.com/video/i2nGUaWpUzs/video.htmlsi=YJslAhfCDTrYvamq
@@OptimizedPortfolio Thanks! I like the desert portfolio, but... I'd lever it up! 15% GDE, 30% EDV, 30% RSBT and 25% RSST, to make it 38% stocks, 60% bonds (with more duration risk), 55% trend and ~13% gold. same basic portfolio, but +68% extra leverage. That 3:6:1 is a really sturdy frame on which to build.
Interesting product. A few unrelated questions, thoughts maybe: If Uncle Sam understands the ETF's purpose, is there any risk of them regulating a fund like this out of business? The government likes their money. Point 2, if/when interest rates drop, will anybody care about any of these options anymore? In other words, is the money savings for a short period of time worth the effort? Seriously considering despite the comments above. Appreciate all thoughts, thanks!
Yea, always a risk of future changes in regulations and tax laws.
Point 2: Sure. We always need a place for short term cash and emergency fund.
I know this is about tax savings but just for the info I ran BOXX v SGOV thru ETF Return Calc for Jan 2023 - present and you get:
SGOV = 5.23% Return
BOXX = 5.12% Return
Pretty close then add in tax strategy, looks good! Cheers
Is ETF Return Calc a particular tool? I'm getting different results with PV as I showed in the video: www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=5cmgcNQyxCBsKdC15MCaJG
What if you are in a high tax state like New York or California, etc.? Also, how did BIL perform during that period?
@@rlmint Again, BOXX has less of an edge for high tax states, so consult your tax professional on the comparison. BIL is basically the same thing as SGOV but with a higher fee.
Hey! Thanks for highlighting this great tool
Against SGOV, it has tax benefits cause you save the 30% of the dividend distribution?
(Im not a US investor, I believe I cannot avoid paying that 30% tax over dividends) :)
Yes, primary benefits are cap gains over income and the deferral/avoidance thereof.
I was in this ETF before but this brought me to your CZcams channel. Do you have securities you recommend that have similar structure, the only big diversified non-dividend stocks that come to mind are Berkshire Hathaway, are there others you recommend or ETFs for that matter?
Not sure I understand your question.
remembered the article you wrote about investing the emergency fund. Substituting BOXX for VGSH, gives higher CAGR and Share ratio. Only a year's worth of data so probably not important.
Good point. I may incorporate it in there, or I may just leave that one to be pretty simple and approachable. BOXX alone is arguably hard enough to wrap one's head around. VGSH is also longer than T-Bills, though.
Is it still relevant to international Investors? Where we pay only Long-term capital gains tax?
Possibly. Consult your tax professional.
Any idea why the price of BOXX dropped today almost $0.25?
My holdings just lost $400 in value today
Dividend ex date. I'd suggest making sure your email alerts are enabled so that you can better monitor your holdings.
Are you positive BOXX distributes dividends?
@@edaison What do you mean? Of course. They just announced one. Hence the drop. Today was the ex date.
Would BOXX have a noticeable impact over a HYSA or SGOV for those not in a high tax bracket ? Or would it be close to a wash due to the lower income tax rates ?
Great question. Definitely!
Consider someone making about $40k/yr. In 2024, their marginal tax rate on HYSA or SGOV distributions would be 12%, but LTCG rate for that person would be zero.
Suppose $1,000 in effective interest over 1 year. HYSA or SGOV would incur a tax bill of $120, even if it's just reinvested. BOXX would [hopefully] have no distributions (like for 2023) and if the investor wanted to realize gains, their LTCG rate again is zero, so zero taxes.
What however could be the changes if and when rates start to lower on the 4 week T-Bills. I see in just the past week a major change of over a point plus in the 8 week against the 4 week. This is as of 8/5/2024. What would the expect ROR be in a declining or rapidly declining rate environment?
Not sure what you're asking. BOXX will closely follow 3-month T-bill rates at any given time.
@@OptimizedPortfolio I wasn't clear. It's an instrument that is highly parallel to the T-Bill rate as you expressed. This product was brought to my attention this morning by a friend. I have around 250k in Capital losses I'm still carrying and at 3k a year my grandchildren wouldn't benefit from the inheritance of those loses (if such were the case). After watching a few other vid on BOXX following this one, I don't really see the advantages I suppose. Largely because of the cautionary warning someone pointed out in a vid with raising the red flag with the lack of clarity in absolute treatment by the IRS. Could you please re-state the reasoning to do BOXX vs. T--Bills which my wife and I started doing last year. There are trade offs. Boxx is claimed to be treated as a Captial Gain. If that were in concrete that would be great. However with T-bill they offer favorable overall tax benefits of only Federal. BOXX also has it's fees and there was suggestion it will be going higher. Lastly I get the feel with the relative lack of history with this product it feels like something quickly put together for a moment in time to compete with the T-bill gig.
Excellent video, thank you.
Thanks for watching!
This is a great video, but with the tax rates we face in MN, our marginal tax rate with boxx would be about 2.6% higher than with tbills
Thanks for sharing. Even when considering LTCG after a year?
@@OptimizedPortfolio Yes, based on 60% long term and 40% short term CG, which is what I thought you said. Federal 22% marginal, 15% LTCG, 6.8% state, bumping up to 7.85% state.
The 60/40 is for any distributions, so I guess it comes down to whether or not BOXX is able to avoid them, which we can't know for sure ahead of time. But that's the plan. It had no distributions for 2023. If you could hold for a year, then anything you sell would just be LTCG. But of course you might need your emergency fund within a year. So a murkier comparison indeed.
@@OptimizedPortfolio assuming 100% LT, 15%+6.8%=21.8%, vs 22% (tbills are state tax exempt), so if there are 0 short term gains and I manage to stay out of the 7.85% bracket, a 0.2% gain is best case.
There would be more benefit for people whose income is higher.
Thanks very informative.
Glad you thought so!
Great video, very good information
Regards from Egypt
Thanks!
How does early exercising play into this fund?
Again, European options so no risk of early assignment.
smart strategy
Indeed
So straddling the S&P 500 for the long term
Doesn't necessarily have to be for the long term. However you long you want to invest cash until you need it.
Unless I'm missing something, I think SGOV would be better in the short term and BOXX for the long term. Also one for tax advantage and the other for taxable
A closer toss up over the short term, but BOXX still probably comes out ahead due to its ability to avoid distributions. At worst, STCG would be at one's marginal tax rate, same as SGOV's interest.
Why not just use Irish UCITS accumulating ETFs for TBills?
U.S. citizens can't buy accumulating funds.
Thanks John, but what about tracking error stemming from both 1) drift between the S&P and the risk-free rate and 2) drift between the spread and the underlying S&P value? The S&P won’t perfectly approximate the risk-free rate nor will the spread perfectly approximate the S&P’s movement over the same period, right?
The value of the S&P is irrelevant to the box spread trade. It's just used because it's a highly liquid index.
I don’t understand calls or puts
While I'm certainly usually a fan of understanding what you're buying and why you're buying it, recognize that you don't need to understand calls or puts in order to benefit from this fund. That's why it was created - so that investors don't have to go manually implement box spreads on their own.
What if US tax does not apply?
Consult your tax professional.
Optimized Portfolio:This is what a Roth IRA is.
Also Optimized Portfolio: BOXX is an arbitrage investment in a wrapper you can spend a weekend attempting to understand.
Hey I'm not complaining its this sudden depth that I like about the channel !
Thanks for watching! Remember though that a Roth IRA incurs penalty and taxes on early withdrawal of earnings, so not really the same thing, though one could arguably use their Roth contributions as an emergency fund.
Circling back here, I realize I must have misunderstood the joke you were going for originally. I like it! 😂But yes I've thought about that exact thing, like I wonder if the "What is a Roth IRA?" video viewer cares about the BOXX video and vice versa. But I do want to have a range of content for both novices and seasoned investors.
@@OptimizedPortfolio its all good I figured it was a poor joke or you were busy that day
What is the actual tax benefit with BOXX compared to T-bills?
I explained that in the video. Cap gains over income and avoidance/deferral of distributions.
*head explodes*
🤯
Why did BOXX go down .28 about a 1/4 percent on 8/13/24 ?
Because they paid a distribution.
@@OptimizedPortfolio Yes, I called them, and checked my account. The distribution is 60% long term, 40% short term cap gains.
Not sure I fully understand this product enough to invest. Sounds almost too good to be true.
That's what I thought at first too.
@@OptimizedPortfolio does that explain the perplexed look in the thumbnail? 😂
@@mere_cat Hah totally!
Sounds like a lot of counterparties that can go south. No thanks.
Maybe. Probably not. Only time will tell.
@@OptimizedPortfolio Don't invest more than you can afford to lose in that.
Thanks, sounds a little bit complicated. I am using $HIGH to park cash in my IRA account. 9% yield after expense, almost no risk.
Yeah HIGH has 50% higher total return than BOXX.
HIGH is selling call spreads on gold miners, Chinese internet stocks, oil and gas companies, and the Russel 2000. Definitely not "almost no risk," and I wouldn't call it less complicated than box spreads either.
As the other user noted, HIGH is arguably more complicated and certainly riskier than BOXX. It also throws off distributions monthly, and here with BOXX the main benefit is the tax efficiency. HIGH's 30 days SEC yield is also 4.82% as of January 2024, which is less than SGOV.
9% yield and almost no risk? Lmfao yeah right!
Every about the word synthetic gives me PTSD from 2008
Different context here.
Wow thats cool. Im definitely going to park 40% of my portfolio in there for safe kerping.
Not.
Cool
I can't stand those stupid cheesy stock videos. So many CZcams consultant has their clients use them. HOrrible.
Well I don't have a CZcams "consultant," but thanks for the feedback!
@@OptimizedPortfolio They really are horrible and really stand out.
@@whodidit99 Noted
Eighth Commenter
🙌