Your current advisor may not offer this. These independent firms do and the tax savings can be significant.
A Section 351 exchange lets you move appreciated securities into an ETF without triggering a capital gains tax event. The IRS code is clear. The mechanics are proven. The savings are real, and most investors never hear about it from their current advisor.
Why it matters
Wirehouse platforms are built around proprietary products. Contributing appreciated stock into a third-party ETF sits outside their operating model entirely.
Regulatory framework for Section 351 exchanges, IRS Code § 351(a)
The challenge
In-kind contributions trigger legal and supervisory review that most wirehouse compliance teams are not equipped to clear at the branch level.
FINRA Rule 4512, Compliance supervision requirements
Technical barrier
A 351 exchange routes assets to a custodian outside the bank. Large brokerage platforms are not built for that flow.
SEC Custody Rule 17a-3, Third-party custodial arrangements
Business incentive
Wirehouse advisors are paid on assets that stay on the platform. A 351 exchange moves assets out and generates no fee for them.
Fiduciary duty analysis, SEC Adviser Guidance (2019)
Independent RIAs, multi-family offices, and boutique asset managers that actively facilitate Section 351 exchanges for clients with concentrated, low-basis positions.
Markets 351 conversion ETFs as a strategy for ultra-high-net-worth clients with concentrated low basis stock.
Launched the Longview Advantage ETF in February 2025 as a 351-seeded fund.
Launched the Sustainable Beta ETF in November 2024 as a 351-seeded fund with significant institutional backing.
Markets Section 351 exchanges as a tax-smart way to reposition portfolios with big gains.
Publishes detailed analysis of 351 ETF exchanges and the conditions under which they make sense for clients.
Launched its own ETF in June 2025 using a 351(a) conversion with ETF Architects as the service provider.
Winter Park, FL
2 Million+
55N
RIA
Winter Park, FL
Firm AUM
~$367M
Client minimum
Not disclosed
351 ETFs
None stated
Fee-only RIA built for HNW investors with taxable portfolios, focused on tax-efficient strategies for appreciated positions
PL
RIA
St. Louis, MO
Firm AUM
~$8.4B
Client minimum
None stated (~$1M+ typical)
351 ETFs
Offers 351 exchanges; no proprietary ETF
Publishes a guide framing 351 exchanges as a sophisticated IRS-recognized process and offers them to clients
DW
RIA
Palm Beach Gardens, FL
Firm AUM
~$4.9B
Client minimum
Not disclosed
351 ETFs
1 - Dakota Active Equity — Jun. 2025
Launched its own ETF in June 2025 using a 351(a) conversion with ETF Architects as the service provider
RW
RIA
New York, NY
Firm AUM
~$3.7B
Client minimum
None (waived)
351 ETFs
1 - Goaltender ETF — filed 2025
Filed for the Goaltender ETF (GTND), an actively managed 351 exchange fund, sub-advised by Ritholtz with Alpha Architect’s Empowered Funds as advisor
EW
RIA
Philadelphia, PA
Firm AUM
~$3B
Client minimum
None (waived)
351 ETFs
1 - Goaltender ETF — filed 2025
Publishes detailed analysis of 351 ETF exchanges and the conditions under which they make sense for clients
EF
RIA
Austin, TX
Firm AUM
Not disclosed
Client minimum
Not disclosed
351 ETFs
Offers 351 exchanges; no proprietary ETF
Publishes detailed analysis of 351 ETF exchanges and the conditions under which they make sense for clients
SC
Asset manager
Boston, MA
Firm AUM
~$156M
Client minimum
Not disclosed
351 ETFs
1 - Stance Sustainable Beta ETF — Nov. 2024
Launched the Sustainable Beta ETF in November 2024 as a 351-seeded fund
Firm
Reported posture
Among the big four wirehouses overseeing about $15 to $17 trillion in client assets, with Morgan Stanley leading at $8.2 trillion. No public 351 exchange platform or marketed capability identified.
Wirehouses such as Merrill are notorious for gatekeeping access to ETFs, controlling trillions of investor dollars, with smaller issuers particularly affected. No public 351 exchange platform or marketed capability identified.
Listed among the big four wirehouses. No public 351 exchange platform or marketed capability identified.
Listed among the big four wirehouses. No public 351 exchange platform or marketed capability identified.
No public 351 exchange platform or marketed capability identified.
No public 351 exchange platform or marketed capability identified.
No public 351 exchange platform or marketed capability identified.
