Episode 70: Dr. Wes Gray discusses the unique tax benefits of ETFs and other topics of interest, host Rick Ferri

Wes Gray, CEO of Alpha Architect, returns to discuss the tax benefits of exchange-traded funds (ETFs). Gray recounts his unconventional path from Wharton to a PhD under Eugene Fama at the University of Chicago, followed by a stint in the Marine Corps. He explains how his experience with wealthy real estate investors shaped his focus on tax minimization, leading to the exploration of ETFs as a tax-deferral structure. The conversation covers the unique ability of ETFs to transact in kind, avoiding capital gains distributions. Gray also introduces the Alpha Architect one to three month box ETF (BOXX), designed to extract funding rates from the option markets. Finally, Gray describes how Section 351 of the tax code can be used to seed an ETF.