What is a 351 Exchange?
A 351 exchange is a tax provision that can allow investors to convert separately managed accounts into ETF shares completely tax-free during an ETF's launch period.
Key Benefits of a 351 Exchange
- Reduced Tax Impact: Expectations of minimal to no capital gains distributions*
- Cost Basis Preservation: Maintain your existing cost basis and tax lots
- Enhanced Tax Planning: Greater control over your tax situation
*Capital gains distributions are possible inside an ETF if the ETF is not able to use the create-redeem or custom basket process.
The Benefits After Conversion
- Expectations of $0 capital gains distributions*
- Allows for more aggressive implementation of an investment strategy
- Access to Burney's proven investment expertise
- Long-term tax control and planning advantages
*Capital gains distributions are possible inside an ETF if the ETF is not able to use the create-redeem or custom basket process for whatever reason.
Interested in Future 351 Exchange Opportunities?
These opportunities only exist during ETF launches and are not continuously available. Sign up for our notification list to be informed about upcoming 351 exchange opportunities.
Who is eligible for a 351 exchange?
What investments can be converted?
Generally, US equities can be converted. ETFs can often be converted as well, but mutual funds, bonds, international stocks, and alternative investments usually cannot.
What happens to my cost basis?
Your existing cost basis transfers to the ETF, preserving your tax lots and allowing for future tax planning.
How does this benefit me long-term?
After conversion, your investments can be rebalanced without triggering taxable events, potentially saving thousands in taxes annually while maintaining exposure to our investment strategy.
Will I still pay taxes on dividends?
Read the latest commentary from our investment blog.
