Firms face increased scrutiny as updated IRS guidance introduces new compliance considerations for ETF conversions under Section 351.
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351 Exchange News, Regulatory Updates & Market Intelligence
Track every IRS ruling, legislative shift, and market trend shaping the Section 351 exchange landscape. Built for advisors, issuers, and compliance professionals who need to know what’s happening—before it impacts their practice.
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ICI Asks Treasury for Clear Rules on 351 Conversions
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ICI Asks Treasury for Clear Rules on 351 Conversions
February 24, 2025
By Matt Bucklin, MBA
6 min read
The Investment Company Institute has filed a comment letter with the Treasury Department asking for guidance on 351 conversions. The strategy lets investors move concentrated stock positions or full portfolios into ETFs without triggering an immediate capital gains bill, as Bloomberg reports.
Section 351 Exchange News & Analysis
From IRS guidance updates to new legislation and market-moving trends, the developments that matter for 351 exchange practitioners, all in one place.
The Internal Revenue Service issued Notice 2026-14 clarifying holding period and continuity-of-interest standards that apply when mutual fund portfolios are contributed to newly organized ETF sponsors under Section 351.
A growing number of asset managers are exploring Section 351 transactions as ETF conversions accelerate across the market landscape.
Firms face increased scrutiny as updated IRS guidance introduces new compliance considerations for ETF conversions under Section 351.
A growing number of asset managers are exploring Section 351 transactions as ETF conversions accelerate across the market landscape.
The Internal Revenue Service issued Notice 2026-14 clarifying holding period and continuity-of-interest standards that apply when mutual fund portfolios are contributed to newly organized ETF sponsors under Section 351.
IRS Releases Updated Guidance on Section 351 Continuity-of-Interest Requirements for ETF Conversions
The Internal Revenue Service issued Notice 2026-14 clarifying holding period and continuity-of-interest standards that apply when mutual fund portfolios are contributed to newly organized ETF sponsors under Section 351.
The Internal Revenue Service issued Notice 2026-14 clarifying holding period and continuity-of-interest standards that apply when mutual fund portfolios are contributed to newly organized ETF sponsors under Section 351.
Industry experts weigh in on the growing importance of Section 351 exchanges and how advisors are leveraging them to deliver more tax-efficient investment solutions.
351 Exchange Market Trends
Data-driven insights on 351 exchange volume, issuer activity, and the forces driving market growth. Updated regularly with proprietary analysis.
+42%
351 exchange filings up 42% year-over-year
Q4 2024 vs. Q4 2023 · Proprietary exchange network data
Eight consecutive quarters of double-digit growth confirm that Section 351 exchanges are moving from niche strategy to mainstream practice. Accelerating issuer entry, growing advisor training penetration, and a favorable tax climate are all contributing to what may be the most significant structural shift in the concentrated equity management market in a decade.
Expert Perspectives on the 351 Exchange Landscape
Interviews, commentary, and opinion from the advisors, issuers, and compliance professionals shaping the Section 351 space.
Key Takeaways from Leaders in the Section 351 Space – perspectives 1 –
Insights from industry professionals on trends, risks, and opportunities in exchange structuring.
Key Takeaways from Leaders in the Section 351 Space – perspectives 2
Insights from industry professionals on trends, risks, and opportunities in exchange structuring.
Why Section 351 Exchanges Are Now a Front-Line Tool for Advisor-Led TaxPlanning – perspectives 7
The advisors who are winning clients with concentrated positions aren't waiting for tax law to change. They're using 351 exchanges…
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A Section 351 exchange allows investors to contribute appreciated securities to a fund or ETF in exchange for fund shares without triggering immediate capital gains taxes, helping defer taxes while gaining diversification.