Celebrating Three Years of BRNY ETF Success
The Burney Company proudly acknowledges a significant milestone with the three-year anniversary of its flagship Burney U.S. Factor Rotation ETF (BRNY). Since launching, the fund has seen a net asset value increase of 24.8%, surpassing the S&P 500's return of 22.8%. This impressive performance underscores the effectiveness of Burney's investment strategies.
Introducing BRES: The Burney US Equity Select ETF
With the success of BRNY, Burney is excited to announce the anticipated launch of its new ETF, the Burney US Equity Select ETF (BRES), set to debut soon. This fund aims to provide robust core U.S. equity exposure, leveraging over five decades of stock selection expertise perfected by Burney.
BRES's approach includes evaluating stocks against five essential factors—Growth, Valuations, Profitability, Quality, and Momentum—ensuring adaptability to varying market conditions. Furthermore, the fund employs advanced digital footprint analysis to uncover companies that exhibit strong revenue potential that may not yet be recognized by the wider market.
The Benefits of Investing in BRES
The ETF format facilitates extensive diversification, enabling BRES to hold anywhere from 80 to 100 stocks. In contrast, traditional separately managed accounts typically comprise around 40 stocks. This broader diversification allows for more frequent rebalancing while minimizing tax implications for investors, making it an attractive option for those looking to diversify their portfolios.
Additionally, during the launch phase, BRES will offer a unique 351-exchange opportunity. Investors can transfer appreciated securities into the ETF until January 8, 2026. This efficient process, regulated by the Internal Revenue Code, allows investors to transfer assets without triggering immediate capital gains taxes, offering a smooth transition into a professionally managed ETF structure.
Key Features of the 351-Exchange
With the 351-exchange feature, investors unlock several advantages, including:
- The ability to convert highly appreciated securities into a broadly diversified ETF holding
- Maintaining their original cost basis and holding period
- Deferring capital gains taxes until ETF shares are ultimately sold
- Access to professional portfolio management services
To qualify, most diversified US equity portfolios can participate, provided they hold at least 25 different stocks and that no single stock represents more than 25% of the total portfolio value.
Insights from Burney Leadership
Lowell Pratt, President of Burney, explained, "We've spent 50 years refining our investment process. BRNY has shown that our strategies are effective in an ETF format. BRES extends our core stock selection model to more investors while allowing a tax-efficient transition from concentrated positions to a diversified portfolio. The 351 exchange has proven beneficial for our clients in the past, and we are thrilled to bring this opportunity to investors again."
For those interested in the 351 exchange, it's crucial to express an indication of interest before the January deadline in 2026.
About The Burney Company
The Burney Company, nationally recognized as the #4 financial advisory firm according to CNBC's recent rankings and notably the top firm in Virginia, offers investment management and comprehensive financial planning since its establishment in 1974. The firm provides tailored services to individuals, families, and businesses through a combination of separately managed accounts and ETFs.
For further details regarding BRES or to inquire about the 351-exchange opportunity, potential investors can find information on their website.
Frequently Asked Questions
What is BRNY ETF?
BRNY is the Burney U.S. Factor Rotation ETF that has achieved a robust return since its inception.
When is the BRES ETF launching?
The Burney US Equity Select ETF, or BRES, is set to launch in early 2026.
What benefits does the 351 exchange provide?
The 351 exchange allows investors to transfer appreciated securities into BRES without immediate capital gains taxes.
How many stocks does BRES hold?
BRES is designed to hold between 80 to 100 stocks, providing more diversification than traditional accounts.
What is the objective of Burney's investment strategy?
Burney aims to leverage its extensive expertise in stock selection to benefit investors through innovative and strategic ETF structures.
