CoreQ™ ETF
A quality focused equity ETF — with Section 351 seeding available to qualifying investors.
What began as our internal framework for evaluating business quality will now be available as an ETF. A vehicle built on the same methodology that drives every strategy we manage, available at scale.
The Strategy
What the Fund Owns
The CoreQ™ ETF holds an equal-weight, quarterly rebalanced, portfolio of 100 companies drawn from the S&P 500®. The holdings are selected through the CoreQ™ framework — a systematic methodology for identifying businesses that earn the most durable returns on invested capital, surfaced through extensive accounting adjustments applied at scale.
The philosophy is straightforward: in order to grow, a company must earn more than it costs to build and maintain itself. A simple concept with a heavy analytical load to implement. Which the CoreQ™ ETF delivers at scale via a cost effective and tax efficient ETF wrapper.
Portfolio construction is quantitative and rules driven. Equal weighting ensures that the portfolio's performance is driven by the quality of the selection process, not by concentration in a handful of mega-cap names. The result is diversified exposure to what is quantitatively the highest quality companies within the index from which they are pulled.
Flexible ETF Seeding
IRS Section 351 — Transfer to Corp. Controlled by Transferor
Section 351 of the Internal Revenue Code provides a mechanism for contributing securities to an ETF at launch in exchange for fund shares, without triggering a recognition event at the time of contribution.
If you hold equity positions with meaningful embedded gains, you're familiar with the friction associated with evaluating a new strategy. Typically an allocation shift means selling first, which forces a realization decision separate from your view on the opportunity.
A Section 351 contribution alleviates that friction. Your cost basis and holding period carry over from the contributed securities into the ETF shares you receive.
Participation is available during the pre-launch seeding period to investors whose contributed portfolio(s) meet the statutory diversification requirements. Once the fund begins trading publicly, the contribution window closes as a function of how the statute operates.
Existing Portfolio(s)
Appreciated securities with embedded gains.
Eligibility Screen
No single issuer >25% of contributed value. No five issuers >50% collectively.
Contribution
Investor contributes qualifying securities to ETF at launch and receives ETF shares in return. Original cost basis and holding period carries over.
Post-Launch
ETF operates under its stated mandate and SEC-governed policies. The investor holds liquid, exchange-traded shares in a professionally managed fund with the structural benefits of the ETF wrapper.
Existing Portfolio(s)
Appreciated securities with embedded gains.
Eligibility Screen
No single issuer >25% of contributed value. No five issuers >50% collectively.
Contribution
Investor contributes qualifying securities to ETF at launch and receives ETF shares in return. Original cost basis and holding period carries over.
Post-Launch
ETF operates under its stated mandate and SEC-governed policies. The investor holds liquid, exchange-traded shares in a professionally managed fund with the structural benefits of the ETF wrapper.
The above information is provided for illustrative purposes only and does not constitute tax, legal, or investment advice. Section 351 treatment depends on each investor's individual facts and circumstances. Prospective contributors should consult qualified tax and legal advisors before making any investment decisions.
The CoreQ™ ETF is built for investors seeking long-term, diversified exposure to high-quality U.S. equities through a professionally managed, tax-efficient vehicle.
The flexible seeding structure is available to investors and advisors managing equity portfolios with meaningful embedded gains — whether for personal capital, client accounts, or family office allocations.
Request More Information
If this opportunity fits your mandate, we'd welcome a conversation.
Prefer email? info@newwestcap.com