Alpha Architect 1-3 Month Box ETF·Financial Services

BOXX hits a 52-week high as its box spread strategy rides on elevated yields and risk-off demand, raising prospects for further near-term gains.

BOXX is a Treasury ETF in name only. It does not actually hold T-bills or other government bonds.

BOXX hits a new 52-week high as risk-off flows boost demand for its box spread strategy tracking short-term T-bill performance.

Cullen Roche emphasizes that portfolio construction must be highly customized to individual timelines, risk tolerances, and financial goals. Traditional diversification strategies, like the 60/40 portfolio, face new challenges given elevated valuations and diminished bond diversification; temporal diversification is now critical.
Under normal market conditions, the fund generally invests substantially all, but at least 80%, of its total assets in the Box Spreads such that the weighted average maturity of the Box Spreads based upon expiration dates is less than 90 days. The principal investment strategy of the fund will be to utilize an exchange-listed options strategy called a box spread ("Box Spread").
Financial Services
Asset Management
2022-12-28
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