We do not provide tax advice, and we suggest you discuss this question with your accountant. Generally, exchange funds are beneficial for highly-appreciated stocks, as they allow you to diversify your portfolio without incurring a huge taxable event. Thus, the stocks with the highest gains would theoretically benefit the most.

Different investors have different preferences, based on their long-term objectives. We do allow you to choose which lots of stocks you contribute, so that you have the ability to choose an approach to tax lot relief that best suits your situation.

To get a general sense of how stocks with a different cost basis might perform over time, you may want to try our exchange fund simulator.