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.