With our exchange funds, our goal is to help you diversify your large stock positions tax efficiently. Specifically, we bring together investors to form funds that approximate the performance of a broader index. Our current funds are benchmarked to the Nasdaq-100.

An investor should view our exchange fund as a way to obtain growth exposure in their portfolio while reducing concentration risk. While many tech stocks loosely track the performance of the Nasdaq-100, its performance over time has surpassed most of the individual stocks it contains:

Source: Bloomberg data, Cache analysis.

As an index, the Nasdaq-100 also tends to have less volatility than its constituent stocks while maintaining a similar upside profile. Like index funds, exchange funds also carry certain risks, including the loss of principal.

See more about how exchange funds work and how concentration risk can impact your portfolio.