Exchange funds, streamlined for the modern advisor.

Offer tax-efficient diversification to more of your clients.

SEC registered
Secure & private
$MSFT

We are a partner to sophisticated, fast-growing wealth advisors that want to do more for their clients.

We’re breaking down barriers

“Cache is a most welcome departure from traditional exchange funds and a perfect fit for clients looking for diversification, but want to maintain exposure to the growth sector.”

Jon Porter
CEO, Three Bell Capital

Jon Porter is not a direct client of Cache Advisors LLC, but collaborates with Cache Advisors LLC on behalf of their firm’s clients. No compensation has been provided for sharing their opinion and experience with our firm.

Faster diversification

Monthly fund closing, instant matching, and automated onboarding.

Growth exposure

Nasdaq-100 benchmark means more capacity for high-growth stocks and a complement to other exchange funds.

Broader availability

Open to ALL accredited investors and qualified purchasers with minimums starting at $100k.

Lower fees

Management fees from 0.4% to 0.8%.
No sales fee.

About the Cache Exchange Fund

”Stockholders often find themselves deciding between diversification and tax efficiency. Our clients can have both by leveraging the Cache Exchange Fund.”

Aaron White
Chief Growth Officer, Adero Partners

Aaron White is not a direct client of Cache Advisors LLC, but collaborates with Cache Advisors LLC on behalf of their firm’s clients. No compensation has been provided for sharing their opinion and experience with our firm.

$AAPL
$AAPL
10%
$GOOG
$GOOG
8%
$CSCO
$CSCO
7%
$AVGO
$AVGO
7%
$AMZN
$AMZN
8%
MSFT
MSFT
10%
$TSLA
$TSLA
7%
$META
$META
7%
$NVDA
$NVDA
7%
$NFLX
$NFLX
4%
$ADBE
$ADBE
4%
$INTC
$INTC
4%
$v
$V
4%
$qcom
$qcom
4%
$intu
$intu
4%
$ebay
$ebay
4%
$pypl
$pypl
2%
$crm
$crm
2%
$uber
$uber
1%
$ABNB
$ABNB
1%
$snap
$snap
1%
$SNOW
$SNOW
1%
$VEEV
$VEEV
1%
$BKNG
$BKNG
1%
$WDAY
$WDAY
1%
Cache ExchanGe fund

Any securities shown either by name or by symbol are not to be construed as investments the Fund may make. The information shown is strictly for illustrative purposes and is not intended to be a recommendation to buy or sell these securities.

Portfolio

60 to 80 securities, plus a real estate investment

Benchmark Index

Nasdaq-100

Target Beta and Correlation

1.0

Holding period for tax advantages

7 years

How redemption works

Redeeming out of the Cache Fund (the “Fund”) is not the same as selling stocks. After the 7-year holding period required of the Fund , investors will receive a “redemption in kind” which means that upon redemption, you will receive a pro-rata portion of each security held in the Fund based on the percentage of the Fund that you held.

The distribution is not a taxable event as investors may continue to own their securities. A redeemed portfolio can continue to grow on a tax-deferred basis and is eligible to continue participating in an exchange fund.

What if I need to redeem earlier?

What if I need to redeem earlier?

Before two years, you won’t be able to redeem. We institute a two-year lockup to encourage long-term investors to participate. Each pool is carefully weighted to achieve certain investment goals, and redemptions hurt your fellow investors.

After two years but before seven years, redemption requests are satisfied by distributing your original contribution back to you at a rate that is the lower of the contributed stock value at the time of redemption or the value of your fund shares based on the fund’s net asset value.. The rest is retained until term commitments are met. Note that early redemptions incur a penalty fee. Please refer to the fund documents for a full set of redemption terms.

After seven years, you can redeem a diversified portfolio on a tax-deferred basis.

Investor qualifications

Accredited investors in the US.

Holding period

All US-listed securities are eligible. Securities in the NASDAQ-100 are highly desirable.

Tax-advantaged diversification

Contributions and redemptions don’t trigger taxable events under the current IRS code. Transform a high-risk single stock holding to a diversified portfolio without dragging down your client’s overall net worth.

See why advisors choose Cache

Cache has been a great value add to my clients as it allows them to address the single stock risk, without needing to pay a large tax to do so.

Ian Wymore

Principal and Senior Wealth Advisor, Compound

Legacy providers are too expensive and solutions like Cache are leveling the playing field.

Ralph Dryborough

Managing Partner, Fort Point Capital Partners

Before Cache, I'd never been able to get clients into an exchange fund. Cost and access have been the main challenges.

Alex Caswell

Wealth Planner at RHS Financial

Representatives of the firms above are not direct clients of Cache Advisors LLC, but collaborate with Cache Advisors LLC on behalf of the firm’s clients. No compensation has been provided for sharing their opinion and experience with our firm.

See the difference

Let’s say you want to diversify $300K in stock. Doing it through an exchange fund defers tax liabilities, creating significant growth over time.

40.8%

How redemption works

Redeeming out of the Cache Fund (the “Fund”) is not the same as selling stocks. After the 7-year holding period required of the Fund , investors will receive a “redemption in kind” which means that upon redemption, you will receive a pro-rata portion of each security held in the Fund based on the percentage of the Fund that you held.

The distribution is not a taxable event as investors may continue to own their securities. A redeemed portfolio can continue to grow on a tax-deferred basis and is eligible to continue participating in an exchange fund.

potential incremental pre-tax gain with an exchange fund.

How does redemption affect my gains?

How redemption works

Redeeming out of the Cache Fund (the “Fund”) is not the same as selling stocks. After the 7-year holding period required of the Fund , investors will receive a “redemption in kind” which means that upon redemption, you will receive a pro-rata portion of each security held in the Fund based on the percentage of the Fund that you held.

The distribution is not a taxable event as investors may continue to own their securities. A redeemed portfolio can continue to grow on a tax-deferred basis and is eligible to continue participating in an exchange fund.

Try our calculator

Exchange Fund

$300,000
$584,615
Capital gain: $284,615
INITIAL INVESTMENT: $300,000

If you sell & invest

$300,000
$213,125
$415,320
Capital gain: $202,195
TAX DRAG -$86,875
INITIAL INVESTMENT: $300,000
INITIAL INVESTMENT: $213,125
Start Point
At investment
AFTER 7 YEARS

Simulated results for illustrative purposes only. Assumes a tax status of married filing jointly in CA with a combined annual income of $600,000+. Effective capital gains tax rate: 34.75%. Initial cost basis: $50,000. Expected annual return on your portfolio: 10%. Investment Term: 7 years. The expected annual return rate of 10% is hypothetical, gross of fees, and used to illustrate the benefits of potential tax deferral.

The output of this calculator is for educational purposes only and should not be considered investment, legal or tax advice. It is intended for use by U.S. individual taxpayers resident in the 50 states or the District of Columbia, and is not applicable to trusts, estates, corporations or persons subject to special rules under federal, state or local income tax laws. The output is general in nature and is not intended to serve as the primary or sole basis for investment or tax-planning decisions. For more individualized information, you should consult your tax advisor or investment professional. You bear sole responsibility for any decisions you make based on the output of this calculator. The calculator makes certain assumptions that may not apply to you. The calculator has many inherent limitations, and individual results may vary.

The Advisor's Guide to Exchange Funds

Detailed Exchange Fund overview
Hypothetical projections
Cache FAQs
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Super easy, for you and your clients

Breeze through streamlined onboarding

Our platform provides instant fund matching, monthly closes, and automated onboarding process.

Use your existing custodian

Our fund shares can be onboarded on to Schwab, Fidelity, and other major custodians. Receive monthly updates on your custodian or on the Cache platform.

Address your client’s entire portfolio

Most advisors manage little of their clients concentrated positions. We help you manage your client’s concentrated assets more effectively.

Receive wholesale discounts

Add more value by offering clients discounts below our retail rates. Your discounts increase as our partnership grows.

Exchange funds compared

What sets Cache apart is the minimum investment is just $100,000, and a benchmark to the Nasdaq-100.

Investors can achieve some tax loss harvesting by direct indexing, but that strategy takes time, and often, it’s difficult to find large offsets if the concentrated stock has appreciated by a lot.

Exchange Funds

Direct Indexing with tax-loss harvesting

Sell and Diversify

Tax efficiency

High

Low - Medium

Very low

Method of tax efficiency

No taxable event on contribution or redemption. Taxes are deferred until a sale of redeemed stocks.

Offset gains with ongoing investment losses (tax-loss harvesting).

Offset gains with existing investment losses (tax-loss harvesting).

Implicit Investment Tax Rate

0% (no tax on contribution or redemption)

Short-term gains (up to 54% in CA) and long-term gains (up to 37.1% in CA)

Short-term gains (up to 54% in CA) and long-term gains (up to 37.1% in CA)

Liquidity timeline

Seven years investment period

Indeterminate

Immediate

1. Explore availability OR Schedule an intro call

Have specific clients in mind? Use our real-time fund matching to check availability instantly. We’ll reach out to help you. Or, you can book a 30-minute introductory call to understand how our exchange fund operates.

2. Educate your clients

After confirming availability, you can start discussing the benefits and risks of exchange funds with your clients. We offer detailed guides and calculators to support you throughout this process.

3. Confirm and begin onboarding

Upon client approval, confirm their participation using our portal. Assist them with onboarding by pre-filling their details for final sign off. Once they sign, their shares will join the fund at the next closing.

4. Receive ongoing reporting

Your clients' exchange fund shares can be held at your custodian of choice; we partner with all the major ones. You'll receive monthly reports and in-depth analysis from our Investments team.

Trustworthy by design

”I connected with Cache early last fall and had some initial conversations, completed a review and we were really impressed with what we saw.”

Aaron White speaking with WealthManagement.com
Chief Growth Officer, Adero Partners

Aaron White is not a direct client of Cache Advisors LLC, but collaborates with Cache Advisors LLC on behalf of their firm’s clients. No compensation has been provided for sharing their opinion and experience with our firm.

Registered and regulated

We've built Cache in strict accordance with regulations. Cache is an SEC-registered Broker–Dealer and Investment Advisor.

Assured asset custody

Our funds are held at BNY Mellon, the largest custodian bank, and protected by SIPC. Our deep partnerships with battle-tested providers assure asset safety.

Best-in-class partners

Best-in-class fund administrators, fund accountants, fund auditors, legal counsel — you’ve got enough headaches already, no need to worry about us.

A talented team that has your back

We are an interdisciplinary team of engineers, designers, portfolio managers, equity analysts, and operations professionals from world-class institutions.

Srikanth
Narayan

Founder and CEO

Srikanth founded Cache in early 2022 after experiencing concentrated stock positions in his own portfolio. Previously, he served in engineering and product leadership positions at Uber and Alphabet. Self-taught in finance and economics, he obtained a Series 65. Srikanth received in Bachelors in Computer Science from RVCE, India and Masters in Human-Computer Interaction from UC Berkeley.

Christopher
Lange

Head of Investments

Christopher joined Cache in early 2023 as the Head of Investments. Previously, he spent a decade at Goldman Sachs Asset Management, managing institutional portfolios and helping build their OCIO business. He also spent 6+years at a boutique investment firm, DGV, as Managing Director. Christopher received his Bachelors degree from Yale and an MBA from Columbia Business School.

Michael Allison,
CFA, CFP®

Investments Strategist

Michael joined Cache in fall 2023 as Investments Strategist. He’s worked as an investment professional for over three decades, including 20+ years at Eaton Vance, where he served as the Director of Equity Strategy, and helped build the industry-leading exchange fund franchise, as well as an equity option income franchise. He graduated from the University of Denver.

Help clients with tax-efficient diversification.

We make it faster and easier for your clients to access exchange funds.

Start with a quick intro call

Ready to get started?

Check Availability

Other products

We've built a complete solution for your clients with large stock positions.

$TSLA

Stock Lending
Lend stocks and earn income

Help your clients earn passive income on the stocks they are holding. Cache automates the stock lending process and passes 60% of the revenue to your client, the highest among brokerage firms.

Collar Advance
Borrow up to 90% on your stocks

Help your clients borrow up to 90% of the value of their stocks, at rates much lower than a mortgage loan and without the risks of margin calls.

$MSFT

Common questions

What's the main benefit of participating in a Cache Exchange Fund?

The main benefit is tax-advantaged diversification. Overexposure to a single company stock means higher risk, more volatility, and statistically less growth.

The probability of any stock outperforming the market is low. In 2022, only 12% of stocks in the Nasdaq-100 index significantly outperformed the index, and only 1% outperformed the index by more than 50%.

On a longer timespan, index funds have had higher risk-adjusted returns than all but a handful of stocks. The average equity investor underperformed the S&P 500 by 4.32% over the 20 year period from 1992–2011. Since 2002, over 80% of QQQ stocks underperformed the index over a 5-year period, and 85% underperformed over a 7-year period.

With Cache, you’ll exchange your equity for a diverse set of investments, all without triggering taxes. This tax deferral ensures that the full value of your equity stays invested in the market, compounding over time. Assuming historic stock returns, this adds to a sizable advantage over time.

With Cache Exchange Fund
Without Cache Exchange Fund

How is an Exchange Fund different from an ETF?

Exchange Funds shouldn't be confused with Exchange-Traded Funds (ETFs). While ETFs are publicly traded and widely accessible, exchange funds are private funds similar to hedge funds or VC funds that have been out-of-reach for most people. Exchange funds have been offered by large investment firms since the 1960s, but they've only been accessible by the ultra-wealthy.

We've rethought this financial instrument from the ground up, turning a mostly manually run operation into a highly precise and automated solution accessible to a much larger audience.

How does the fund formation process work?

Once investors have signed-off on their contributions, the stocks are pooled in a fund registered as a Delaware Limited Partnership. Our independent third-party fund administrator will set the Net Asset Value for the fund, which helps determine each investor's percentage ownership. Certain qualifying asset investments, such as real estate investments, are made to ensure compliance with the regulatory requirements of an exchange fund.

Fund shares will be issued through our transfer agent and show up on your Cache brokerage account. The fund assets will be held at BNY Mellon, an institution with decades of experience in asset custody.

My stock has a significant correlation to Nasdaq-100? Should I still diversify?

If your client holds a tech stock that seems to correlate with the Nasdaq-100, they are able to trade their single-stock risk to a diversified exposure while maintaining a similar return profile with the Cache Exchange Fund.

Elimination of business risk and concentration risk, while maintaining a similar upside.

You'd have helped your client achieve tax efficiency with the Nasdaq-100 allocation of their portfolio, while diversifying the rest into broader sectors using other methods.

Can my client meet the $100K minimum with more than one company’s stock?

Yes, you can contribute vested stocks from multiple companies.

Can my client sell or transfer my fund shares?

Like any private funds, such as hedge funds or VC funds, there are no public exchanges for these shares. Fund shares will be redeemed by Cache only, or through the custodian and fund administrator in the event that Cache is no longer operational. Fund shares can be transferred through gifts or inheritances.

Can my client participate through a trust?

Yes, Cache allows legal entities such as trusts and LLCs to register for a brokerage account, and participate in the Exchange Funds.

What if we don’t meet the minimum investment amount?

Even if you don’t meet the minimum, you can reserve a spot. Our team will be able to waive the minimum on a case-by-case basis for select stocks that help with overall investment objectives.

Is it okay to contribute a company’s stock if my client still works there?

Probably, but it depends on the company’s policy and their position in the company. We’ll make sure they’re eligible to participate before they contribute and help you understand their company policies. The good news is, many large firms have friendly policies.

Generally, we encourage companies to follow the standards set by Apple. In their 2022 Proxy Statement, they include, "We allow for certain portfolio diversification transactions, such as investments in exchange funds."

Can they contribute unvested equity?

No, we can only accept fully vested stocks. Exchange funds are a good fit if they have taxable gains on those holdings.

How will redemptions work once the fund “matures”?

At redemption, we’ll distribute a diversified basket of stocks to each investor, while matching their ownership percentage and cost basis, so long as investors have met the minimum investment timeframe. We don’t charge any redemption fees.

All our exchange funds are perpetual-life vehicles, which means they will continue to grow in a tax-deferred manner, even after seven years. You can also roll over your redemptions to another exchange fund.

How will redemptions work if the client hasn’t completed the required time commitment?

We institute a two-year lockup on the shares contributed to the fund and generally encourage long-term investors to participate. The reason: each pool is carefully weighted to achieve certain investment goals, and redemptions hurt your fellow investors. If you have short-term liquidity needs, this investment is not for you.

To gain the full benefits of the exchange fund, regulations require a seven-year holding period. Redemption requests after the lockup but before the seven-year mark are satisfied by distributing your original contribution back to you at a rate that is the lower of the contributed stock value at the time of redemption or the value of your fund shares based on the fund’s net asset value. The rest is retained until term commitments are met. Note that early redemptions incur a 2% penalty fee. Please refer to the fund documents for a full set of redemption terms.

What are the expected fees?

Our "retail" pricing is expected to be as follows (pending fund offering):
$100K+ - 0.8% management fee
$250K+ - 0.65% management fee
$500K+ - 0.6% management fee
$1M+ - 0.5% management fee
Advisory fees are charged on gross asset values struck by the fund administrator.

For our RIA partners, we offer the ability to access discounts on management fees for your clients based on the total assets you bring across your client base.

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