BOXX ETF Brings 4% Institutional Income To Retail Investors

"The Alpha Architect 1-3 Month Box ETF ( CBOE:BOXX) has accumulated $9.4 billion in assets since its December 2022 launch, bringing institutional-grade box spread strategies to retail investors. This options-based ETF currently offers a 4.1% annualized yield, positioning itself as an alternative to ultrashort-duration Treasury funds for cash management. BOXX produces returns through box spreads on S&P 500 Index options - four-legged positions combining a bull call spread and a bear put spread at different strike prices."

"These positions create a risk-free arbitrage structure that locks in a predetermined return at expiration, typically 1-3 months out. The fund earns the difference between what it pays to establish the position and what it receives at expiration, generating returns that track short-term interest rates without holding actual Treasury securities. With zero portfolio turnover, BOXX holds these positions to maturity, creating potential tax advantages over traditional bond funds."

"The safety of BOXX's income depends on three factors: options market liquidity, interest rate stability, and execution precision. As of December 26, 2025, the fund's positions averaged 84 days to expiration with a 4.1% yield to maturity. This yield fluctuates with short-term rates but remains structurally sound-box spreads are mathematically guaranteed to pay the spread between strikes at expiration."

BOXX has accumulated $9.4 billion in assets since December 2022 and delivers income through S&P 500 box spreads that combine a bull call spread and a bear put spread. The ETF locks in predetermined returns at 1–3 month expirations and earns the difference between establishment cost and expiration receipts. The fund currently yields 4.1% annualized with average 84 days to maturity and holds positions to maturity with zero turnover, which can produce tax advantages versus traditional bond funds. Primary risks include options market liquidity, short-term rate fluctuations, execution precision, and potential counterparty issues mitigated by exchange-cleared SPX options.

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