The Cache Exchange Fund was designed to be more accessible than traditional exchange funds. In launching our funds, our goal was to broaden eligibility, to make it easier to join an exchange fund, and to make it as cost-effective as possible.
Here are the main differences:
Higher Capacity for Growth Stocks: Unlike traditional exchange funds, which are typically only available for broad market indices like Russell 3000, Cache offers the first Nasdaq-100 exchange fund, which offers a higher capacity for growth stocks. Cache also offers Exchange Funds linked to other indexes such as the S&P 500 and S&P 500 Growth.
Faster Diversification: While most exchange funds hold a closing on a quarterly or semi-annual basis, Cache typically offers a bi-weekly close, helping with faster diversification.
Broader Eligibility: Cache is available to Accredited Investors and Qualified Purchasers, while the other providers are only open to Qualified Purchasers.
Benchmark Alignment: Index Sync gives us an additional tool to align a fund to its benchmark (typically the Nasdaq-100 or S&P 500). A Flagship fund may contribute a diversified basket of its holdings to a newly launched, benchmark-aligned ETF managed by an unaffiliated adviser, in exchange for ETF shares that the fund holds. The ETF shares give the fund exposure to benchmark constituents that investors have not contributed directly.
Lower Minimums: Exchange funds typically target an ultra-wealthy clientele with a minimum of up to $1 million, whereas Cache is available for investments starting at $100,000 per fund for Flagship funds, and $250,000 per fund for Access funds.
Lower Fees: Cache charges a lower management fee between 0.40% - 0.95% and no sales fees or commissions. Lower fees are based on the amount contributed, with a higher contribution amount making the investor eligible for a lower management fee.
See a detailed comparison in this "List of Exchange Funds" article.