The management fee on a new contribution to a Cache Exchange Fund may be standard, discounted, or higher under the fund’s stock-specific pricing methodology.
Most stocks continue to be offered at standard pricing. Some stocks that help fill a portfolio gap and reduce the fund’s expected tracking error may qualify for a discount. A small number may carry a higher fee.
These adjustments are designed to support the portfolio construction of each exchange fund.
What is stock-specific pricing?
An exchange fund’s composition of stocks is built from those that investors contribute. Cache manages each fund’s composition, available capacity, and which contributions it can accept. However, Cache does not control which stocks investors seek to contribute or how much demand arrives for each stock.
As a result, two contributions of the same dollar amount can have different effects on a fund’s composition. One may fill an important portfolio gap, while another may add to a stock already near its capacity.
Stock-specific pricing helps align new contributions with each fund’s portfolio construction needs. The methodology considers factors including the fund’s portfolio composition, expected contributions, available capacity, and a contribution’s expected effect on tracking error. Based on those factors, a new contribution may receive standard pricing, a discount, or a higher fee.
Your stock’s applicable fee will be shown on your Cache dashboard.
How do stock-specific discounts work?
A new contribution may qualify for a discounted management fee when it is expected to help the fund track its benchmark more closely, including by filling a portfolio gap and reducing expected tracking error.
Discounts reflect a fund’s current portfolio needs and may change or no longer be available as expected contributions, available capacity, and other relevant factors change. You can see any available discounts by visiting your Cache dashboard.
Other discounts, such as advisor discounts and referral discounts, are applied on top of the stock-specific pricing.
How does a high-demand fee work?
A higher management fee may apply when expected contributions substantially exceed the amount the Fund can accept based on its portfolio construction needs and available capacity. This is labeled as “high-demand pricing” for impacted stocks on your Cache dashboard.
Cache may also use allocation limits to determine how limited capacity is distributed.
Any available advisor discounts and referral discounts still apply and can reduce high-demand fees.
Which stocks are affected by stock-specific pricing?
Most stocks remain at standard pricing.
Stock-specific pricing applies to select stocks identified under each fund’s pricing methodology. The affected stocks and terms may vary by fund based on factors such as portfolio composition, expected contributions, available capacity, and the effect of a contribution on expected tracking error.
Your applicable management fee will be shown during enrollment and on your Cache dashboard.
Can high-demand pricing or discounted pricing change?
Yes. The conditions considered under the fund’s pricing methodology can change over time, so the applicable pricing may also change, whether it is a higher fee or a discounted fee.
Cache does not guarantee when or whether a particular stock will return to standard pricing.
Does accepting a high-demand fee guarantee an allocation?
No. Accepting a high-demand fee does not guarantee an allocation. Eligibility requirements and allocation limits still apply.
What is the standby list?
If capacity is currently unavailable, you may be able to join a standby list by transferring shares onto the platform. Standby is a queue, not an allocation or guarantee of participation. It allows Cache to contact you if capacity becomes available or another step opens.
A few things may influence allocation priority: how diversified your contribution is, the timing of your transfer, and each fund’s portfolio construction needs for the close. No single element guarantees allocation.
How long is my quote valid?
Your applicable management fee will be shown during enrollment and on your Cache dashboard. A quote is valid only for the period and conditions stated with it. Your fund documents set out the fee terms that apply to your investment.
What should I consider before proceeding?
A higher management fee is a real additional cost and will reduce returns. It may change whether participating makes sense for you.
Your options may include proceeding under the quoted terms, waiting or joining standby if available, or deciding not to participate. Consider the fee alongside the fund’s risks, eligibility requirements, holding period, tax implications, and available alternatives.
Review the offering documents and consult your own advisers as appropriate.