I’ve read a little (very little) about exchange funds and my impression is that the disadvantages outweigh the advantages in almost all cases. The fees alone eat up a goodly portion of the taxes being avoided. At 1.5%, the first 7 years (that’s the minimum period for participating in an exchange fund) will cost 10.5% in fees. Meanwhile, the capital gains taxes would have been, at most, 23.8%, and sometimes a little lower if you time the sales well.
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