Wall Street Found an ETF Tax Loophole Worth $8.7 Billion
As Featured In: TheStreet — Damilola Esebame (reviewed by Dana Sullivan Kilroy) · March 17, 2026
This TheStreet feature examines the rapid growth of Section 351 exchanges used to seed new ETFs with appreciated stock, deferring capital gains for wealthy investors. Imperio Wealth Advisors’ Charles Sachs is quoted on why he’s cautious about the strategy: once assets are inside the ETF wrapper, switching approaches later can be difficult without triggering the very gains investors were trying to defer.
The piece also covers IRS scrutiny, pending legislation, and the diversification rules that determine whether a transfer qualifies.
This post summarizes content originally published by TheStreet. It is provided for informational and educational purposes only and is not personalized investment, tax, or legal advice. Views expressed in the original piece are those of the quoted individuals and/or original publication, not a guarantee of future results. Investment Advisory Services are offered through Mariner Platform Solutions (MPS), an SEC-registered investment adviser. Imperio Wealth Advisors and MPS are not affiliated entities.
