BUXX: Protect Your Capital With This Yield Enhancer

2025-04-30 09:49:39 ET

Summary

• BUXX, a short-dated fund by Strive Asset Management, offers a robust alternative to T-Bills with a 0.75-year duration and 5.04% yield.
• The fund's composition includes 27.4% IG corporate bonds, 25% ABS, and 20% CMBS Agency, ensuring low credit risk with high credit ratings.
• BUXX outperformed during the April 2025 market stress, showing minimal drawdown compared to other yield enhancers and CLO funds.
• The fund provides a 50-80 bps yield enhancement over treasuries, with limited drawdowns, making it an attractive risk/reward proposition for investors.

Thesis

When it comes to short dated funds, investors have alternatives to pure T-Bills or treasuries via yield enhancers. The Strive Enhanced Income Short Maturity ETF ( BUXX ) is such a fund. The name comes from Strive Asset Management, and represents a fairly new offering in the space....

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