EXCHANGE FUND - Tax-Efficient Solutions for Diversifying Concentrated Stock

I recently came across this strategy and want to share with you in case you have any particular concentrated stocks which have greatly appreciated and may be facing large tax liability if you were to sell it.

AN EXCHANGE FUND (not ETF which is "exchanged-traded fund")

Purpose: Allowing you to defer capital gains taxes while diversifying away from your appreciated positions.

Definition: A tax-efficient private fund owned by investors who exchange their individual stock for shares in the fund. Exchange funds only accept “in-kind” stock contributions, not money. Also, shares in the fund cannot be bought or sold on public exchanges.

I personally do not have this issue so be sure to do further due diligence if you are interested in exchange funds

source: https://usecache.com/companion/what-is-an-exchange-fund#toc-1

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EXCHANGE FUND - Tax-Efficient Solutions for Diversifying Concentrated Stock