How the two fund lines differ
Dimension | Access Funds | Flagship Funds |
Who they’re built for | Accredited Investors | Qualified Purchasers only |
Typical Investment | $100K minimum | $100K minimum |
Primary use-case | First-time exchange fund investors diversifying out of concentrated stock positions accumulated from stock compensation | Help highly concentrated stockholders gain diversification through Index Sync |
Capacity and Benchmarks | Designed to grow the portfolio in a balanced manner around benchmarks like the S&P 500 Growth and Nasdaq-100 | Can absorb outsized lots by pairing client stock with strategic ETF rebalances, across benchmarks like the S&P 500, S&P 500 Growth, and Nasdaq-100 |
Close cadence | Typically monthly | Typically twice per month |
Fees | 0.50% - 0.95% | 0.40% - 0.95% |
Lock-up period | Two-year lock-up | No lock-up |
Early redemption fee | 2% of the value of the early redemption | 1% of the value of the early redemption |
What is an exchange fund's holding period vs. a lock-up?
The 7-year holding period is an IRS requirement (IRC Section 721) that investors must satisfy to realize an exchange fund's tax deferral benefit — it is not a lock-up, since investors may be able to request early redemption before the 7-year period is up.
A lock-up, by contrast, is an exchange fund-specific restriction that limits when early redemption of the contributed stock can be requested.
Redeeming early returns the investor's original contributed stock instead of a diversified basket, and also does not carry the tax deferral benefit, since it didn't meet the 7-year holding period requirement.
To learn more about early redemptions, visit How do redemptions from the exchange fund work BEFORE seven years?
Which one makes sense for you?
This depends on your eligibility, our fund capacity, and your investment goals. By default, our Flagship Funds typically offer higher capacity, and also offer more benchmarks, which may make it a more natural fit for most Qualified Purchasers.
Expect the same long-term economics.
Both funds aim to deliver faster diversification, lower fees than legacy exchange funds, and identical tax treatment. The difference is mainly related to who these funds can serve; Accredited Investors are limited to our Access Series.