Gyroscopic Investing

i learned of another very interesting etf today from risk parity radio

this sounds like just the answer for cash in my taxable account we don’t need right now .

imagine a t-bill fund that pays no interest , but just accumulates all the interest for you .

as long as you hold it a year you can get long term capital gains rates on what amounts to interest income by selling .


CRAZY , but tax loopholes allow this fund to use all kinds of straddles and options to convert interest which is taxed at regular income rates in to capital gain rates

the fund has close to 5 billion in it already

it’s called BOXX , googling it i found a simple discussion of it on morningstar

https://www.morningstar.com/funds/boxx- ... t-tax-bill

I hold quite a bit of BOXX. There is some chatter on Bogleheads about how it may not be legal, what it is doing. I'm no lawyer, so I don't know.

But if there is ever an IRS ruling against AlphaArchitect, then BOXX ends up being taxed like BIL, which isn't bad for me... I live in an income taxless State.

But if you live in NY or Cali, you will be raked over the coals, because that ST interest / gain / whatever it is won't be tax-exempt like BIL.

So tread carefully! Don't pick up nickles in front of the streamroller.

i agree …the only risk here is getting taxed on a state level .

but so far these techniques have been used by hedge fund for a long long time .

i would bet berkshire with its billions in cash employ these strategies themselves

There are so many sites devoted to credit card rewards and points at a glance.
I wish there was something out there that showed, at a glance, how BIL is taxed, how BOXX is taxed, etc.

Isn’t BIL still a fine choice if you don’t live in an income taxless state, let’s say a high-tax state?

dualstow wrote: ↑Wed Jan 29, 2025 7:36 am Isn’t BIL still a fine choice if you don’t live in an income taxless state, let’s say a high-tax state?

Sure, but SGOV is better. Lower fees.

I see. Thanks.

I really like XHLF, 6 month tbil duration 0.03% ER

perfect_simulation wrote: ↑Wed Jan 29, 2025 9:13 am I really like XHLF, 6 month tbil duration 0.03% ER

Wow, that is a much better ER than BIL’s.
I see they’re fairly young- 2022 inception date vs BIL’s 2007.