Latest updates on trends in the ETF industry related to section 351 ETF conversions.
Most American equity wealth sits in a few hands, has risen far above what it cost, and cannot be moved without a large capital gains tax bill. Section 351 of the tax code allows for a tax-deferred reorganization of that equity into exchange-traded funds. This paper measures the opportunity, explains how it works, and argues that, set against what these investors already do, it costs the Treasury little or nothing.
Most American equity wealth sits in a few hands, has risen far above what it cost, and cannot be moved without a large capital gains tax bill. Section 351 of the tax code allows for a tax-deferred reorganization of that equity into exchange-traded funds. This paper measures the opportunity, explains how it works, and argues that, set against what these investors already do, it costs the Treasury little or nothing.
Section 351 conversions can help unlock diversification and tax deferral, but success depends on disciplined structure and execution.
The ETF marketplace entered 2026 with a rate of acceleration that is changing the conversation, from whether ETFs will keep expanding to how the ecosystem will support what comes next. Learn about the global and regional trends in ETFs that will matter most this year from State Street’s ETF team.
Most American equity wealth sits in a few hands, has risen far above what it cost, and cannot be moved without a large capital gains tax bill. Section 351 of the tax code allows for a tax-deferred reorganization of that equity into exchange-traded funds. This paper measures the opportunity, explains how it works, and argues that, set against what these investors already do, it costs the Treasury little or nothing.
Section 351 conversions can help unlock diversification and tax deferral, but success depends on disciplined structure and execution.
The ETF marketplace entered 2026 with a rate of acceleration that is changing the conversation, from whether ETFs will keep expanding to how the ecosystem will support what comes next. Learn about the global and regional trends in ETFs that will matter most this year from State Street’s ETF team.
