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Amplius Rolls Out Tax-Smart ETF to Help Investors Shed Stock Concentration Without Triggering Capital Gains

via Business Wire

Firm’s Inaugural Fund Leverages the “351 Exchange” Rule to Offer Tax-Deferred Diversification for Holders of Long-Held, Low-Basis Equities

For investors who have highly appreciated stock positions but feel reluctant to sell due to tax consequences, Amplius Wealth Advisors’ asset management unit has just launched a timely solution.

The firm today introduced the Amplius Aggressive Asset Allocation ETF (Ticker: AAAA). The fund is seeded through a 351 Exchange, an underutilized tax strategy that lets eligible investors contribute appreciated assets in exchange for ETF shares, deferring capital gains in the process.

The fund is a modern twist on exchange funds — but with greater flexibility, transparency, and liquidity.

“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 sitting on a concentrated position — company stock, legacy shares, direct indexing — you now have a smart, tax-efficient way to reposition.”

Aaron Marks, Partner and Chief Strategy Officer for Amplius, sees the AAAA ETF launch as a sharp way for investors to use the tax code. “Very few investors know about the 351 Exchange, and fewer still realize it can be used to fund an ETF,” he said. “We’re out to change that.”

The AAAA ETF is designed for investors who want long-term growth with better balance than a typical large-cap-heavy portfolio. It includes U.S. large-, mid-, and small-cap equities, international stocks, and allocations to fixed income and alternative exposures.

In short, it’s built to help reduce risk without sacrificing upside, according to Matt Liebman, Partner and CEO of Amplius. “The past decade rewarded concentrated growth bets,” he acknowledged. “But diversification matters again, and we believe this fund helps investors take risk off the table on their terms.”

A 351 Exchange allows investors to transfer appreciated securities into a corporation in exchange for stock without immediately triggering capital gains, assuming IRS criteria are met. Though long known to tax advisors, it’s rarely been used in the context of ETFs.

Key advantages for eligible investors:

  • Tax deferral on embedded gains
  • Reduced stock concentration and market risk
  • More control over timing of future taxable events
  • ETF liquidity and transparency

For investors holding sizable positions in a single stock, especially from years of compounding or employer equity, we believe the AAAA ETF is a meaningful planning tool.

About Amplius Wealth Advisors

Amplius Wealth Advisors is a registered independent advisory firm, based in the Philadelphia area managing just over $1.6 Billion in client assets. Amplius is advisor led and founded by a team of experienced wealth managers who work together on a goals-based approach to financial planning and personal investing. They focus on delivering bespoke advice with an amplified experienced. The firm provides bespoke financial planning and investment strategies with a focus on tax efficiency and long-term growth.

For more information, visit https://www.ampliuswealth.com/

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Important Information

The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. This and other important information is contained in the prospectus, which may be obtained by following the links Prospectus and Summary Prospectus or by calling +1.254.629.3866. Please read the prospectus carefully before investing.

Investments involve risk. Principal loss is possible.

A 351 exchange allows individuals or entities to transfer property to a corporation in exchange for stock, without immediately recognizing gain or loss for tax purposes – as along as certain conditions are met.

Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and it is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.

The Fund is actively managed and is subject to the risk that the strategy may not produce the intended results. The Fund is new and has a limited operating history to evaluate.

Equity Investing Risk. An investment in the Fund involves risks similar to those of investing in any fund holding equity securities, such as market fluctuations, changes in interest rates and perceived trends in stock prices. The values of equity securities could decline generally or could underperform other investments. In addition, securities may decline in value due to factors affecting a specific issuer, market or securities markets generally.

Foreign Investment Risk. Returns on investments in foreign companies could be more volatile than, or trail the returns on, investments in securities of U.S. companies. Investments in or exposures to foreign markets are subject to special risks, including risks associated with foreign securities generally. Those special risks may arise due to differences in information available about issuers of securities and investor protection standards applicable in other jurisdictions; capital controls risks, including the risk of a foreign jurisdiction imposing restrictions on the ability to repatriate or transfer currency or other assets; currency risks; political, diplomatic and economic risks; regulatory risks; and foreign market and trading risks, including the costs of trading and risks of settlement in foreign jurisdictions.

Fixed-Income Risk. The market value of fixed-income securities will change in response to interest rate changes and other factors, such as changes in the effective maturities and credit ratings of fixed-income investments. During periods of falling interest rates, the values of outstanding fixed-income securities and related financial instruments generally rise. Conversely, during periods of rising interest rates, the values of such securities and related financial instruments generally decline. Fixed-income investments are also subject to credit risk.

Risk of Investing in Other ETFs. Because the Fund may invest in other ETFs, the Fund’s investment performance is impacted by the investment performance of the selected underlying ETFs. An investment in the Fund is subject to the risks associated with the ETFs that then currently comprise the Fund’s portfolio.

Management Risk. The Fund is actively managed and may not meet its investment objective based on the Adviser’s, Sub-Adviser’s, or portfolio managers’ success or failure to implement investment strategies for the Fund

ETFs may trade at a premium or discount to their net asset value. ETF shares may only be redeemed at NAV by authorized participants in large creation units. There can be no guarantee that an active trading market for shares will exist. The trading of shares may incur brokerage.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. We make no representation or warranty as to the accuracy or completeness of the information contained herein including third-party data sources. The views expressed are as of the publication date and subject to change at any time. No part of this material may be reproduced in any form or referred to in any other publication without express written permission. References to other funds should not be interpreted as an offer or recommendation of these securities.

The Fund is distributed by Quasar Distributors, LLC. The fund’s investment advisor is Empowered Funds, LLC, which is doing business as ETF Architect. Amplius Asset Management, LLC serves as the Sub-adviser to the Fund. Quasar is not affiliated with ETF Architect or Amplius Asset Management, LLC.

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