A list of exchange funds worth knowing about is actually pretty short. Cache, Goldman Sachs, Morgan Stanley (through its 2021 acquisition of Eaton Vance), and Glidepath are the names that come up again and again once you start researching exchange funds as a way to diversify a concentrated position.
They’re not interchangeable, though. Minimums, fees, and who can actually get in the door vary enough that finding the right pick for you requires some research.
What to compare when evaluating exchange fund providers
Every exchange fund runs on the same underlying mechanics: you contribute appreciated stock to a partnership under Section 721 of the tax code instead of selling it, which defers the capital gains tax and gets you a proportional interest in a diversified pool. What actually differs from provider to provider is:
- Minimum investment: how much appreciated stock you need to contribute to get in
- Management fee: what you pay annually to stay in the fund
- Holding period: how long you’re committed before you can redeem for a diversified basket, typically seven years
- Eligibility standard: accredited investor or the higher qualified purchaser bar
- Qualifying illiquid asset: what the fund holds to satisfy the rule requiring at least 20% of assets in a qualifying illiquid asset
How the main exchange fund providers differ
| Provider | Minimum investment | Management fee | Holding period | Eligibility |
|---|---|---|---|---|
| Glidepath | $100,000 | None | 7 years | Accredited investor |
| Cache | $100,000 | 0.40%–0.95% annually, stepping down to 0.25% after year seven | 7 years | Accredited investor |
| Goldman Sachs | Not publicly disclosed | Not publicly disclosed | 7 years (standard under Section 721) | Qualified purchaser |
| Morgan Stanley (Eaton Vance) | Not publicly disclosed | Not publicly disclosed | 7 years (standard under Section 721) | Qualified purchaser |
Glidepath: no management fee, $100,000 minimum
Glidepath charges no management fee to members. That’s not an introductory rate that reverts after a year, and the fee structure itself is what sets it apart: it’s funded by the fund’s own qualifying assets rather than a slice of member returns.
The $100,000 minimum and accredited investor standard are both lower bars than the legacy providers require. To meet accredited investor status, you need an annual income of $200,000 ($300,000 with a spouse) for the past two years, or $1 million in net worth excluding a primary residence. This is the SEC’s baseline standard for private securities generally, and it’s well below the $5 million in investable assets qualified purchaser status requires.
Paired with the $100,000 minimum, that puts the fund within reach of someone diversifying a single company’s stock package, not only family offices moving eight-figure positions. See whether your position clears that threshold.
Cache
Cache launched in 2024, built by a former Uber and Alphabet engineering leader who ran into the same problem exchange funds solve: too much of his own net worth tied up in one company’s stock.
Its $100,000 minimum matches Glidepath’s. But its management fee runs 0.40% to 0.95% annually depending on contribution size, stepping down to 0.25% once you’re past the seven-year mark — a fee schedule the company publishes in full on its own site.
Goldman Sachs
Goldman Sachs’ exchange fund traces back to the 1960s, when Wall Street firms first built these structures for executives at companies like Kodak, GM, and IBM whose pay was tied up in employer stock.
It’s still run as part of Goldman’s private wealth platform rather than sold as a standalone product: access generally requires an existing advisor relationship and qualified purchaser status (the SEC’s higher eligibility bar requiring at least $5 million in investable assets).
In exchange for that higher bar, you get direct integration with an established wealth-management relationship rather than a self-serve signup. Goldman doesn’t publish a minimum investment or fee schedule for the fund.
Morgan Stanley
Morgan Stanley’s exchange fund comes from its 2021 acquisition of Eaton Vance, the firm that obtained the IRS ruling in 1975 first clarifying the rules exchange funds still operate under today.
Like Goldman’s, it’s folded into a broader private wealth relationship rather than a direct-signup product, with the same qualified purchaser standard and no published minimum or fee schedule. The tradeoff is the same one: a higher eligibility bar for a fund integrated into an existing advisory relationship rather than an open platform.
How to choose the right exchange fund for your position
Two questions narrow this down before the fee schedule or the sections above matter: what’s your position actually worth, and do you already have a private wealth relationship with one of these firms for other assets?
If the answer to the second question is yes, that relationship is worth a direct conversation regardless of what’s written here. You may already meet the qualified purchaser bar without realizing it, and an existing advisor is often the fastest path in.
If you’re starting from scratch, the comparison points are: minimum investment, whether a fee applies and how it’s structured, holding period, eligibility standard, and what the fund holds as its qualifying illiquid asset.
Ready to diversify and defer without a management fee?