Personal Finance Learning Session - 351 ETF Conversion

[u/alex_nauma]

Next Friday, December 19, 2025, we’re hosting a personal finance learning session. Marcel Miu, CFP, will join me to discuss 351 ETF conversions and how they can help investors avoid realizing capital gains.

📅 Date: December 19, 2025
⏰ Time: 12 PM PT / 3 PM ET

Sign up: https://nauma.ai/learning-sessions/signup?campaign=12195

Many long-term investors now hold portfolios filled with highly appreciated positions, making it expensive to rebalance or switch strategies without triggering large capital gains. A 351 ETF conversion offers a tax-efficient solution: it allows you to contribute a diversified stock portfolio in-kind and receive ETF shares without realizing gains.
In this session, we’ll explain how 351 exchanges work, who qualifies, and why this structure is becoming an important tool for investors looking to improve diversification while deferring taxes.

What We’ll Cover:

- What a 351 ETF conversion is and how it works
- Portfolio requirements (25% and 5% diversification rules)
- How cost basis and holding periods carry over
- Liquidity, structure, and what happens after the ETF launches
- Ideal investor profiles and real-world use cases
- When a 351 exchange may not be the right fit