The Longview Advantage ETF (EBI): A Systematic, Factor-Tilted Core Equity Strategy

The Longview Advantage ETF provides broad exposure to U.S. large-, mid-, and small-cap companies while tilting toward key drivers of expected returns: it overweights securities with lower valuations and higher profitability ratios in pursuit of enhanced long-term performance. The approach combines the benefits of traditional indexing — diversification, low turnover, and transparency — with an adaptive process that uses market price information to inform day-to-day trading decisions.

Hill Investment Group, founded in 2005 by Rick Hill and Matt Hall, is a client-focused wealth management firm built on transparency, discipline, and academically grounded investment strategies, serving roughly 120 families across the U.S. Hill Investment Group is a billion-dollar RIA and is the founding partner of Longview Research Partners, which brings the firm’s evidence-based approach to this fund.

Section 351 of the Internal Revenue Code is a long standing rule: when one or more persons transfer property to a corporation solely in exchange for that corporation’s stock, no gain or loss is recognized on the transfer. It is the same principle founders rely on when they contribute assets to a newly formed company, applied to portfolios of marketable securities. Advisors often describe it as the 1031 exchange of the equity world, though the two provisions are separate and work differently.

In practice, an investor holding appreciated securities contributes those securities in kind to a newly organized entity and receives shares of that entity in return. Because nothing is sold, no capital gain is realized at the moment of the exchange. The investor’s original cost basis and holding period carry over to the new shares, so the deferred gain travels with them and is recognized when the shares are eventually sold. Deferral is the benefit. Elimination is not on offer.

Alignment is the manager’s call. The diversification test is the tax question, and missing it can cause the transfer to be treated as a taxable sale in full. Other conditions matter in practice as well. The exchange cannot be a pre arranged sale in substance, post contribution changes to the portfolio are examined, tax law can change, and the Internal Revenue Service may look past the form of a transaction to its substance. This is why the work is done with counsel and a tax advisor rather than on the strength of a marketing page.