What's in the BOXX? Part 1: State Rates

BOXX (Alpha Architect's 1-3M box spread ETF) gets punished by state income tax. Does it matter?

The Alpha Architect 1-3 Month Box ETF (BOXX) is complicated.

It’s worth a close look because it delivers three significant tax wins in the ETF wrapper:

• It accrues capital gains (instead of ordinary income)

• It avoids distributing (to reduce tax drag vs. similar ETFs)

• When sold, it could be taxed at lower long-term capital gains rates

However, when sold, inve…