RIA Amplius Wealth Advisors on Monday announced the launch of its first fund, the Amplius Aggressive Asset Allocation ETF (AAAA), an exchange-traded fund (ETF) that the firm said takes advantage of the IRS’ “351 Exchange Rule” to provide tax-deferred diversification for those investing in long-held, low-basis equities.
The ETF started trading on the Chicago Board Options Exchange (CBOE) on July 16, an Amplius spokesperson told WSR.
AAAA includes U.S. large-, mid- and small-cap equities; international stocks; fixed income; and alternatives, Amplius said.
Advisors are increasingly embracing alternatives as a growth engine for clients’ investment portfolios, viewing them now as essential, multi-purpose portfolio components and no longer just part of diversification strategies, according to the findings of iCapital’s recent “2025 Global Advisor Survey.”
The firm designed AAAA for investors who are reluctant to sell appreciated equity positions due to tax consequences, Amplius said.
These investors tend to want long-term growth with better balance than a typical large-cap-heavy portfolio, according to Amplius.
Section 351 of the U.S. tax code is an “underutilized” tax strategy that Amplius said “lets eligible investors contribute appreciated assets in exchange for ETF shares, deferring capital gains in the process.”
A 351 Exchange lets investors transfer appreciated securities into a corporation in exchange for stock “without immediately triggering capital gains, assuming IRS criteria are met,” Amplius pointed out.
Although the 351 Exchange has been “long known to tax advisors, it’s rarely been used in the context of ETFs,” according to the firm.
The major advantages of AAAA for eligible investors are that it provides: tax deferral on embedded gains, reduced stock concentration and market risk, greater control over timing of future taxable events, and ETF liquidity and transparency, Amplius explained.
“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,” Amplius said.
“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.”
“Very few investors know about the 351 Exchange, and fewer still realize it can be used to fund an ETF,” according to Aaron Marks, Partner and Chief Strategy Officer for Amplius. “We’re out to change that.”
AAAA was built to help reduce risk without sacrificing upside, according to Matt Liebman, Partner and CEO of Amplius.
“The past decade rewarded concentrated growth bets,” Liebman said. “But diversification matters again, and we believe this fund helps investors take risk off the table on their terms.”
Amplius is a network partner firm on the Dynasty Financial Partners platform, the Amplius spokesperson noted.
Amplius is based in the Philadelphia area and manages just over $1.6 billion in client assets, it said.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
