Section 351 ETF Exchanges: How They Work and Who Qualifies
For investors with diversified, heavily appreciated portfolios, the cost of rebalancing can be prohibitive. Section 351 of the Internal Revenue Code offers a legitimate, IRS-codified mechanism to contribute appreciated securities to a newly formed ETF without triggering an immediate capital gains event. This primer covers the mechanics, eligibility requirements, benefits, risks, and process — written for financial advisors and accredited investors.