So how safe is this BOXX ETF?

Would be nice to park cash using BOXX for my short put LEAPS option position to collect near 3 month treasury rates but only pay long term capital gains on it if I need to liquidate in a year for delivery of SPY.

would beat SGOV on a tax basis. Sounds too good to be true so what am I missing.

They use European options via CBOE Flex options to remove early assignment risks etc…

 

While asset size doesn't always mean safety, it has $5.7B of NAV. The best part about the BOXX ETF is that it returns capital gains, not ordinary income.

From ChatGPT:

 

I looked into this before here.
https://www.elitetrader.com/et/threads/boxx-etf-any-thoughts.379472/#post-5964219

Certainly more risk than holding treasuries directly. But it does offer better control of when you owe taxes

 

It is very safe for those who invested in it earlier.

You rarely see a chart that goes up in a perfectly straight line.
How did the investors manage to generate such a pattern?

 

I have boxx held for over 12 months. Let me know what to look for and I'll tell you.

 

I think there is the risk that during a illiquidity market panic (2008/2020), this will trade at a discount to nav for a few days/weeks. so if you need the cash to buy bargins, you will have to take a haircut

 

dumbest post yesterday.

 

boxx trades against sofr as well, so in a credit risk, sofr could expand vs treasuries. With its very short duration, this risk may not be material.

 

The only two pracitcal risks I can think of
1. sofr vs fed rates (stated above)
2. you may not get good margin treatment vs treasuries should you need that capital.