The 351 Exchange ETF Is Here. More Are on the Way
Where did the capital gains go?
An ETF tax trick for wealthy investors has been snowballing this year. So-called 351 exchanges, which let investors transfer assets from other holdings in their portfolios and defer (or ultimately avoid) capital gains taxes, are popping up in an expanding menu of exchange-traded funds. The latest choice is from Cambria Investment Management and is the third such fund it has added to its line. The Cambria Global EW ETF (GEW) launched last Thursday and had attracted $150 million ahead of its debut. The company’s prior two 351 exchange ETFs, the Tax Aware ETF (TAX) and Endowment Style ETF (ENDW), garnered $30 million and $100 million leading up to their respective launches.
“My expectation for the…
