Skip to main content

Can Collar Advances provide liquidity during the exchange fund holding period?

Updated this week

This is an area Cache is actively developing. Exchange funds require a 7-year holding period under IRS rules, and lending against exchange fund partnership interests could provide liquidity during this time without triggering early withdrawal penalties.

This combination would allow you to diversify through an exchange fund while still accessing cash when needed, without sacrificing the tax deferral benefits of either product.

Did this answer your question?