Convert low-basis portfolios into an ETF
At Basis, we orchestrate Section 351 SMA to ETF conversions so you can move from legacy holdings to a scalable, tax-aware ETF wrapper.
ABOUT
Built for tax-aware ETF conversions
Architecture that stands for clarity and purpose.
Architecture that stands for clarity and purpose.
We provide the infrastructure and ops to convert appreciated, low-basis SMAs into an ETF via Section 351—deferring taxes while upgrading to a modern, scalable wrapper. We handle eligibility, docs, in-kind transfers, seed night, and launch so RIAs and families can simplify portfolios without triggering gains.
PROCESS
Why 351 vs. the alternatives
Discover the full range of services that shape lasting architecture.
Discover the full range of services that shape lasting architecture.
A clean, auditable 6-step path to convert appreciated positions into an ETF via Section 351.
From early strategy to detailed delivery, we combine expertise and vision to ensure that every project feels cohesive, intentional, and built to last.
From early strategy to detailed delivery, we combine expertise and vision to ensure that every project feels cohesive, intentional, and built to last.
(01)
Fit & eligibility
Share a quick portfolio snapshot or CSV (tickers, shares, custodian), and we’ll screen asset types and run diversification checks (single-name and top-5 thresholds) plus custodian readiness, returning a clear green/yellow/red outcome.
(01)
Fit & eligibility
Share a quick portfolio snapshot or CSV (tickers, shares, custodian), and we’ll screen asset types and run diversification checks (single-name and top-5 thresholds) plus custodian readiness, returning a clear green/yellow/red outcome.
(02)
Data & docs
Provide LOA and subscription agreement, the latest statements, a full tax-lot file, and any entity details; we normalize and reconcile lots, map them to a contribution schedule, and flag any eligibility or operational issues to resolve upfront.
(02)
Data & docs
Provide LOA and subscription agreement, the latest statements, a full tax-lot file, and any entity details; we normalize and reconcile lots, map them to a contribution schedule, and flag any eligibility or operational issues to resolve upfront.
(03)
Pre-launch controls
After you review and approve the final contribution lots and disclosures—and adopt a short trading freeze—we finalize the seed basket, coordinate AP/admin/custodian workflows, complete compliance checks, and publish the go-live packet.
(03)
Pre-launch controls
After you review and approve the final contribution lots and disclosures—and adopt a short trading freeze—we finalize the seed basket, coordinate AP/admin/custodian workflows, complete compliance checks, and publish the go-live packet.
(04)
Seed night
We coordinate the in-kind transfers into the creation account, run diversification/control tests, and strike the initial NAV while you receive confirmation of contributed positions and a provisional ETF share count per account.
(04)
Seed night
We coordinate the in-kind transfers into the creation account, run diversification/control tests, and strike the initial NAV while you receive confirmation of contributed positions and a provisional ETF share count per account.
(05)
Launch
Your ETF goes live and shares are delivered to the designated accounts; in parallel we handle listings coordination, day-1 operations, and holdings files while verifying cost-basis placeholders with custodians.
(05)
Launch
Your ETF goes live and shares are delivered to the designated accounts; in parallel we handle listings coordination, day-1 operations, and holdings files while verifying cost-basis placeholders with custodians.
(06)
Post-launch
You transition to normal ETF operations and reporting as we deliver the tax opinion and cost-basis override files, reconcile records with custodians, and close the post-launch checklist so ongoing management is turnkey.
(06)
Post-launch
You transition to normal ETF operations and reporting as we deliver the tax opinion and cost-basis override files, reconcile records with custodians, and close the post-launch checklist so ongoing management is turnkey.
Note: Informational only—not tax, legal, or investment advice. Requirements and outcomes depend on your facts and circumstances.
We answer the questions that matter most.
FAQs
FAQs
Do I pay taxes during the conversion?
If requirements are met, no current gain is recognized; basis/holding period carry forward. Taxes occur when ETF shares are sold later.
What can I contribute?
Typically exchange-listed equities and ETFs; certain instruments aren’t eligible. We’ll screen your holdings up front.
What happens after launch?
ETF shares are delivered; cost-basis overrides are propagated; final tax documentation is provided.
How long does it take?
Most of the calendar is document readiness and coordination. Our process page shows the timeline we target.
Will my positions change?
Assets are contributed in-kind; any changes are disclosed pre-launch as part of the final seed basket.
Is this tax or legal advice?
No—outcomes depend on your facts and circumstances. We coordinate with your advisors.
Do I pay taxes during the conversion?
If requirements are met, no current gain is recognized; basis/holding period carry forward. Taxes occur when ETF shares are sold later.
What can I contribute?
Typically exchange-listed equities and ETFs; certain instruments aren’t eligible. We’ll screen your holdings up front.
What happens after launch?
ETF shares are delivered; cost-basis overrides are propagated; final tax documentation is provided.
How long does it take?
Most of the calendar is document readiness and coordination. Our process page shows the timeline we target.
Will my positions change?
Assets are contributed in-kind; any changes are disclosed pre-launch as part of the final seed basket.
Is this tax or legal advice?
No—outcomes depend on your facts and circumstances. We coordinate with your advisors.