Episode 28: The 351 Exchange Explained - Turning Concentrated Stock into a Diversified ETF, Cambria

Many investors build significant wealth in a single stock over time. The challenge comes later: selling the position could trigger a large capital gains tax, but continuing to hold it can leave a portfolio dangerously concentrated. https://www.cambriafunds.com/351So how do investors reduce concentration risk without immediately creating a large tax bill?We sit down with John Keetz, VP of Portfolio Operations at Cambria Investments, to explain the 351 Exchange, a structure that may allow investors to contribute highly appreciated stock into an ETF and receive diversified ETF shares in return, potentially deferring capital gains taxes.This conversation breaks down how a 351 Exchange ETF works and why the strategy is gaining attention among investors dealing with large concentrated stock positions.In this episode, we discuss:• What a 351 Exchange is and how it works • How a 351 Exchange ETF differs from traditional exchange funds • How investors may diversify concentrated stock positions • Potential tax deferral benefits and important considerations • Which investors may benefit most from this strategyIf you have built significant wealth in a single stock position, this episode explains one potential approach to diversifying concentrated stock while managing capital gains taxes. Subscribe to stay up-to-date on future episodes. We’ll be bringing in more experts to talk markets, strategy, and building wealth in a rapidly changing world.#businessownerservices #financialplanning #retirementplanning #taxplanning #wealthmanagement #351ExchangeVisit Our Website: https://investolympus.com/ Legal Disclosures: https://investolympus.com/disclosures/