Astoria Portfolio Advisors is set to launch the Astoria U.S. Enhanced Core Equity ETF (LCOR) in October, aimed at easing investors’ tax burdens in a booming stock market. The fund uses a tax-mitigation strategy under Section 351 of the tax code, allowing investors to reallocate assets without triggering capital gains taxes.

Bruce Lavine, Astoria’s COO, believes LCOR is crucial as Big Tech’s outperformance can lead to hefty tax bills. Stocks like Nvidia and Microsoft have surged in the past year, with Big Tech now making up one-third of the S&P 500. The launch taps into a growing demand for tax efficiency among investors.

VettaFi’s Todd Rosenbluth notes that ETFs are already tax-efficient, but LCOR is designed for those with concentrated individual stock positions. With a 351 exchange, investors can transfer assets to the new fund without incurring capital gains taxes. This strategy is particularly useful for those holding onto high-performing stocks like Nvidia and Microsoft.

Read more at CNBC: Using ETFs to help avoid hefty tax bills