Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, highlighted the rapid growth of conversion ETFs under Section 351 of the US tax code. These funds allow wealthy investors to convert concentrated stock positions into diversified ETFs without immediately triggering capital gains taxes. The market already holds $16.6 billion in seed assets with 77 funds launched. Alpha Architect leads the segment with over 35 transactions and more than $1 billion in assets under management. Balchunas predicts the market could reach trillions as more family offices discover the strategy, though regulatory risks remain a concern.
Source: Read the original article
