Exchange funds, on the other hand, may be a better option for clients who own a highly concentrated stock position and need to diversify while deferring taxes. The fund usually tries to match the performance of an index, such as the S&P 500 or the Nasdaq 100. These strategies have been around for a while, but they have become popular lately because of the rise in equity valuations and more people getting stock compensation as part of their jobs. “Exchange funds are not a panacea, but they can provide a mean ...