Exchange a portfolio into an ETF while preserving the cost basis.
A section 351 exchange lets an investor contribute appreciated securities into a fund in exchange for shares, deferring the gain. Arch is partnering with ETF providers on upcoming launches.
351 Overview
Start from what you hold
A concentrated, appreciated portfolio. Selling to diversify realizes the gain, which is usually the reason the position never gets unwound.
Contribute rather than sell
Securities are contributed to a fund in exchange for shares of it. Structured correctly the gain is deferred rather than realized, so the basis carries across.
The basket has to qualify
The contribution must satisfy a diversification requirement. Whether a given basket clears it is a question worth answering before you commit, not after.
You end up holding something different
Different concentration, different correlation structure, a different income profile. That portfolio is the actual outcome, and it deserves the same scrutiny as the one you started with.
Run your basket through the engine.
Send the holdings and we will show you the factor exposures, the risk attribution and the portfolio you would be left holding on the other side.
Arch Indices Corporation provides index and analytics services. Nothing on this page is tax advice, legal advice, an offer or solicitation to buy or sell any security, or a recommendation of any investment strategy. Arch does not operate, sponsor, administer or act as adviser to any exchange or fund, and does not take custody of securities. Section 351 treatment depends on facts and circumstances specific to each investor and is not available in all situations. Consult your own tax and legal advisers before acting.
Disclaimer
Copyright © 2026 by Arch Indices Corporation. All rights reserved. Arch Analytics and Arch Indices are trademarks of Arch Indices Corporation.
The content contained herein does not constitute an offer of investment services. All information provided is impersonal and not tailored to the needs of any person, entity or group of persons unless specifically licensed to do so. Information, indices, portfolios, and analytics provided by Arch Indices is solely for informational purposes.
An index or model portfolio is a hypothetical basket and cannot be invested in directly. Please consult your investment advisor for investment products that track indices or model portfolios.