An exchange fund, also known as a swap fund, is an investment vehicle that allows investors with large stock positions to pool their stocks into a single fund, diversifying their holdings without triggering a taxable event. Given its dependence on the IRS Tax Code, it is a mechanism specific to the U.S., first introduced as early as 1954 with the passage of 26 U.S. Code § 721[1] though the practice traces back to the 1930s through other tax provisions.
The primary benefit of this arrangement is to diversify a large stock position without triggering a "taxable event". Note that the tax is not avoided, just deferred. Deferring taxes avoids tax drag, as the money lost to taxes remains invested in the market, letting the portfolio compound from a larger base, which could create a significant advantage with time. When the diversified holdings are eventually sold, tax will be due on the difference between the sales price and the original cost basis of the contributed stock.
^John A., DiCiccio. "Exchange Funds: The Tax Consequences of a Transfer of Appreciated Stock to a Partnership or a Mutual Fund" (PDF). Delaware Journal of Corporate Law. Retrieved September 18, 2023.
An exchangefund, also known as a swap fund, is an investment vehicle that allows investors with large stock positions to pool their stocks into a single...
The Exchange Stabilization Fund (ESF) is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention...
equity fund or hedge funds. Sovereign wealth funds invest globally. Most SWFs are funded by revenues from commodity exports or from foreign-exchange reserves...
ExchangeFund and the Office of the Commissioner of Banking merged. The organisation reports directly to the Financial Secretary. The exchangefund was...
held. A single mutual fund may have several share classes, for which larger investors pay lower fees. Hedge funds and exchange-traded funds are not typically...
are some time in the past. Stock fund Bond fund Money market fund Target date fund Income trust Exchangefund Income Fund Definition on Investopedia "Income-Generating...
A fixed exchange rate, often called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary...
rights (SDRs), and International Monetary Fund (IMF) reserve positions. In a central bank's accounts, foreign exchange reserves are called reserve assets in...
Schmidtberger & James Munsell, DB Commodity Index Tracking Fund: An Innovative Exchange-Traded Fund, Futures Industry (May/June 2006). Koyfman, Yevgeniy (21...
predominantly via the Oslo Stock Exchange. The Government Pension Fund Global (Norwegian: Statens pensjonsfond Utland, SPU) is a fund into which the surplus wealth...
Exchange Equalisation Account United States's Exchange Stabilization Fund Rainy day fund Sovereign wealth fund IMF registered stabilization funds v t e...
gōngsī) is a sovereign wealth fund that manages part of China's foreign exchange reserves. China's largest sovereign fund, CIC was established in 2007...
they exchange (transfer) to another fund within the same "family of funds". Management fees are fees that are paid out of fund assets to the fund's investment...
A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment...
"soft funding" or "crowdfunding". Funding that facilitates the exchange of equity ownership in a company for capital investment via an online funding portal...
foreign currency deposits, foreign exchange reserves, gold, special drawing rights (SDRs) and International Monetary Fund (IMF) reserve position held by central...
April 1996, the Hong Kong Government purchased the plant through the ExchangeFund, and operated it under the current name. In March 1997, the government...
yield and bank debt, venture capital, real estate and a public equity exchangefund. On April 20, 2010 the company announced acquisition of Denver-based...
BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange which is located on Dalal Street, known as the Wall Street of...
An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the...
report on exchange arrangements and exchange restrictions 2014. International Monetary Fund. October 2014. p. 6. IMF Staff. "Annual report on exchange arrangements...
and in 1991, as a Director of the Office of the ExchangeFund. When the Office of the ExchangeFund merged with the Office of the Commissioner of Banking...
his role in July. List of exchange-traded funds List of mutual-fund families in the United States Money market Mutual fund fees and expenses FTSE Global...
largest amount of sustainable fund flows in 2020 with $14.5 billion as of September 30, 2020. ETF Securities IPath List of exchange-traded funds PowerShares...
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