Core Insights - The introduction of lower minimum investment thresholds for 351 exchange ETFs is expected to attract more investors, with Alpha Architect announcing a new minimum of $150,000 for its upcoming US Equity 2 ETF [2][6] - The 351 exchange allows investors to transfer diversified stock holdings to certain ETFs without incurring capital gains taxes, which has garnered attention as a potential tax loophole [4] Investment Minimums - Alpha Architect's US Equity 2 ETF (AAEQ) will have a minimum investment of $150,000 for Schwab-custodied accounts, while Fidelity clients face a higher minimum of $5 million [2] - Cambria Investment Management has also indicated plans to lower investment minimums for its 351 exchange ETFs to as low as $100,000, potentially increasing participation [6] 351 Exchange Process - The 351 exchange process varies by custodian, with some custodians like Schwab facilitating quicker transfers compared to others, which may take longer [3] - Financial advisors are exploring the 351 exchange strategy for clients with complex portfolios, although the rules can be complicated [5] Market Activity - Alpha Architect's US Equity ETF (AAUS) has attracted nearly $500 million since its launch in July, while Cambria's Global EW ETF (GEW) raised $150 million before trading began in September [6]

Core Insights - The 351 exchange strategy, allowing investors to defer or avoid capital gains taxes, is gaining traction with new ETFs being launched, including the Cambria Global EW ETF (GEW) which attracted $150 million prior to its debut [1][2] - Cambria Investment Management has introduced three 351 exchange ETFs, with the previous two, Tax Aware ETF (TAX) and Endowment Style ETF (ENDW), raising $30 million and $100 million respectively before launch [1][2] - The strategy has drawn attention from both supporters and critics, with legislative proposals being introduced to limit such asset transfers, although the likelihood of passing is low [2] ETF Market Dynamics - The 351 exchange ETFs are becoming more popular, with at least four currently available, including the $476 million Alpha Architect US Equity ETF (AAUS) launched in July [3] - Cambria plans to launch another ETF, the US Equal Weight ETF (USEW), in December, while Alpha Architect is also set to introduce the US Equity 2 ETF (AAEQ) in the same month [3] - The industry anticipates significant growth in assets in the coming months, with expectations of multiples in asset inflows compared to current figures [2]