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Cash Is Still Paying Over 4 Percent and These 3 ETFs Squeeze Out More After-Tax Yield Than Any Money Market
['David Beren', 'July', 'Min Read']
Yahoo Finance
BOXX offers a tax-efficient alternative to traditional money market funds for high-income investors.
Each uses a different mechanism to deliver more after-tax income than a taxable money market fund.
Taxes can strip a third or more from money market distributions, flipping the after-tax ranking for investors in top federal and state brackets.
For an investor in a state with no income tax, the case for TFLO over a plain money market fund weakens considerably, since the federal treatment is identical.
An investor comparing these funds to a money market fund yielding around 4% gross should run the math after taxes rather than on the headline.