Firm’s Inaugural Fund Leverages the “351 Exchange” Rule to Offer Tax-Deferred Diversification for Holders of Long-Held, Low-Basis Equities
Investors with significant capital gains tied up in single-stock positions now have a new option for diversification without immediately triggering taxes.
Amplius Wealth Advisors, a leading independent wealth management firm, announced the launch of the Amplius Aggressive Asset Allocation ETF . This innovative fund allows eligible investors to contribute appreciated assets through a 351 Exchange, a little-known tax strategy that defers capital gains in exchange for ETF shares.
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In an era where many investors are holding concentrated positions often from employer equity or long-term investments this structure offers a tax-smart path to a more balanced portfolio.
“This ETF gives investors a way to diversify without having to pay the IRS immediately,” said Patrick Swift, Partner and President of Wealth Planning at Amplius. “If you’re holding legacy stock, company shares, or a custom indexing position, you now have a smart, tax-efficient way to reposition your wealth.”
The fund represents a modern take on traditional exchange funds, offering greater liquidity, transparency, and flexibility three characteristics that Amplius believes are vital for today’s investors.
“Very few investors know about the 351 Exchange, and fewer still realize it can be used to seed an ETF,” said Aaron Marks, Partner and Chief Strategy Officer. “Our goal is to bring this powerful planning tool to the forefront.”
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The AAAA ETF is structured to support long-term capital appreciation while reducing the risk of overexposure to any single asset. It invests across a diversified mix of U.S. large-, mid-, and small-cap equities, international stocks, fixed income instruments, and alternative assets.
“The last decade favored high-conviction bets in growth stocks,” said Matt Liebman, Partner and CEO of Amplius. “But the environment is changing. Diversification matters again. This ETF is built to help investors reduce risk—without compromising on growth.”
A Strategic Use of the Tax Code
Section 351 of the Internal Revenue Code allows for the transfer of appreciated securities into a corporation in exchange for stock, without recognizing capital gains if certain IRS requirements are met. Though well-established in tax circles, this technique has been underutilized in the ETF space.
With the AAAA ETF, Amplius is bringing that strategy to life in a way that is accessible to high-net-worth individuals, executives, and long-time shareholders looking to mitigate single-stock risk.
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Key Benefits for Eligible Investors:
Tax deferral on embedded capital gains
Diversification from concentrated stock positions
Improved control over the timing of future taxable events
Liquidity and daily transparency via an exchange-traded structure
The launch underscores a broader push within the wealth management industry to democratize sophisticated tax planning strategies and offer investors more control over how and when they pay taxes.
For investors who have watched a single position grow substantially over the years but fear the tax bite of selling, the AAAA ETF could be a timely and valuable planning tool.
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