Is your financial future riding on one or two stocks?

Cache helps you grow your practice by bringing clients' concentrated stock positions, often sitting outside a managed portfolio, into the advisory relationship. Introducing the Cache Exchange Fund lets clients diversify tax-efficiently without triggering capital gains, positioning your practice around advanced tax strategy rather than investment selection alone. This tends to deepen client relationships and generate referrals, while Cache's digital platform and wholesale advisor fee discounts keep the operational lift on your end low.

Cache's structure differs from a traditional exchange fund mainly in accessible minimums, favorable fees, bi-weekly onboarding, and a digital-first platform. Traditional providers like Goldman Sachs and Eaton Vance require significant minimums and are open only to Qualified Purchasers, while Cache starts at $100,000 and is also open to Accredited Investors. Cache's management fee runs 0.40% to 0.95% with no sales fees. Our Index Sync feature is designed to be capable of rebalancing part of the fund into ETFs with the goal of keeping tracking tighter to the benchmark. At redemption after seven years, Qualified Purchasers in our Flagship funds have an option to potentially receive a mix of ETF shares and individual stocks rather than stocks alone.

For a side-by-side of providers, see List of Exchange Fund Providers.

If Cache went out of business, your investment would keep running because each exchange fund is a separate legal entity owned by its investors, not by Cache. Cache doesn't hold your assets either. Exchange fund assets are custodied at Bank of New York Mellon, the largest custodian bank in the world, and an independent fund administrator oversees fund activity while an independent auditor reviews the books each year. At our current revenues, we anticipate being able to operate as an advisor indefinitely. But, even if something drastic were to happen, the advisory role can be transferred to another SEC-registered firm without interrupting your investment. Brokerage assets also carry SIPC coverage of up to $500,000 for securities and $250,000 for cash.

See What happens to my investments if Cache faces financial difficulties or is no longer viable?

An exchange fund keeps more capital invested than selling and reinvesting, since contributing stock isn't taxable, while selling can trigger long-term capital gains up to roughly 37% once federal and state taxes are combined in high-tax states like California — meaning more than a third of a position could leave your portfolio before you even reinvest it. Contributing instead keeps your full pre-tax balance invested and compounding, deferring, not eliminating, the tax until you choose to sell.

Cache Exchange Funds have an annual management fee based on your total commitment, with no sales charges, commissions, or performance fees. For the minimum commitment of $100,000, the fee starts at 0.95% but steps down for larger contributions, down to as low as 0.40% at contributions of $25 million and above. If you were to spread your contribution across multiple funds, the fee would be based on your total contribution. After seven years, if you choose to not redeem your diversified basket of securities, the fee drops to 0.25%. All funds carry modest operating expenses (typically 0.10% to 0.15% annually) for tax, audit, and legal work, which are shared among all investors and are factored into the fund's net asset value. A full fee schedule is available in the fund's offering documents.

For the complete fee schedule, see Is there a complete breakdown of all the fees?.

After seven years, you can redeem your Cache Exchange Fund shares for a diversified basket of securities designed to mirror your fund's benchmark. Qualified Purchasers in our Flagship Fund series may be eligible to receive a mix of low-cost ETFs and individual stocks or a basket of stocks only, while Access investors receive a basket of individual stocks that typically excludes the position they originally contributed. Redemption isn't a taxable event, and your original cost basis carries over to the securities you receive, so tax deferral continues until you sell. You can redeem in full, redeem partially, or stay invested at a reduced 0.25% management fee, and there's no requirement to redeem at year seven since the fund keeps operating for as long as investors remain in it.

For the complete breakdown, see How do redemptions from the exchange fund work after seven years?.

Cache Exchange Funds typically close twice a month, which is far more frequent than the three to six months typical of traditional providers, so you can plan around a company trading window or diversify gradually over time. Because each fund is built to track a specific benchmark, capacity for a given stock can be limited, and some in-demand names carry a short waitlist. When that happens, investors whose shares are already held on the Cache brokerage platform typically get priority as capacity opens up. Shares on the platform do not incur any fees prior to being included in a fund close. You can check upcoming exchange dates and your stock's current capacity by visiting your Cache dashboard.

To learn how our closes are coordinated, see Cache Aperture: how our coordinated Flagship close works.