Meb Faber and Eben Burr Discuss Potential of 351 ETF Exchanges
This excerpt from the “Crux” podcast features Meb Faber discussing the impact of 351 exchanges on the ETF landscape, comparing them to the familiar 1031 real estate exchange for tax deferral. He highlights how these exchanges offer a solution for investors with significant capital gains in appreciated stocks or ETFs who are reluctant to sell due to potential tax […]
New ETF Launch With Seed Assets Using A 351 Exchange
For new ETF issuers, gathering substantial seed assets is often a challenging task. However, Section 351 of the Internal Revenue Code presents a unique opportunity to help issuers launch with significant Assets Under Management (AUM) while offering tax advantages to investors. This mechanism allows investors, particularly those with appreciated, low-basis assets, to contribute their holdings […]
Understanding the Complexities of Section 351 Exchange
A 351 exchange, under Section 351 of the Internal Revenue Code, allows for tax-free transfers of assets into an investment company, such as an ETF. While this structure offers significant tax advantages, navigating a 351 conversion requires careful planning to avoid common pitfalls. Key Challenges in a 351 Exchange Diversification Requirements: To qualify as a […]