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How wealthy investors use ETFs to skirt capital gains taxes. The strategy is 'like magic,' advisor says

1. Investors face high capital gains tax from realized profits. 2. A 351 conversion allows tax deferral when exchanging assets for ETFs. 3. The strategy is sparking interest due to minimized capital gains implications. 4. Strict diversification rules apply to qualify for tax-deferred treatment. 5. High minimum investment amounts reduce accessibility for many investors.

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FAQ

Why Bullish?

The rise of 351 conversions could increase ETF demand, benefiting S&P 500 ETFs.

How important is it?

The article highlights strategies that could lead to increased ETF popularity, indirectly impacting major indices like the S&P 500.

Why Long Term?

As awareness grows, more investors may adopt this strategy, influencing S&P 500 trends.

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