How Family Offices Approach ETFs with Zach Wainwright and Ron Diamond

Why It Matters

Understanding ETF tax mechanics enables family offices to preserve wealth and achieve higher after‑tax returns, driving a shift toward bespoke, tax‑aware products.

Key Takeaways

• ETFs provide tax‑efficient rebalancing via in‑kind exchanges for investors.
• Family offices lack education on ETF tax advantages despite $14T market.
• Institutional inertia and cannibalization fears slow ETF adoption for active strategies.
• Custom “family‑office ETFs” can deliver tailored, tax‑aware exposure and liquidity.
• 351 exchanges let appreciated portfolios seed ETFs tax‑free, boosting compounding.

Summary

The video features Zach Wainwright explaining why ETFs are becoming a core tool for family offices seeking tax‑efficient investing, set against a backdrop of growing interest from billion‑dollar families.

Wainwright outlines how ETFs generate “tax alpha” by using in‑kind creations and redemptions that avoid taxable events, delivering roughly two basis‑point advantages over comparable mutual funds. He also describes the “innovator’s dilemma” that large asset managers face when offering active, custom ETFs.

He cites concrete examples – a 30‑fold compounding of an S&P 500 ETF over 30 years and the use of Section 351 exchanges to roll appreciated portfolios into new ETFs tax‑free – underscoring the practical benefits for high‑net‑worth investors.

The discussion predicts a surge in bespoke, family‑office‑specific ETFs that combine liquidity, dynamic asset allocation, and tail‑risk hedging, signaling a shift toward higher‑touch, after‑tax solutions that could reshape wealth‑management strategies.

Original Description

What changes when ETFs are viewed through the lens of a Family Office rather than a trading tool?

Join us for another episode of Family Office World LIVE to find out. Hosted by Ron Diamond, Chairman and CEO of Diamond Wealth - this episode features Zach Wainwright, Founder and CEO of Twin Oak ETF Company.

This discussion moves beyond basic allocation and into the structural decisions that shape long term outcomes. Zach Wainwright has built his career at the intersection of institutional investing and Family Office execution, with experience spanning Wellington Management, TIFF, and a large single Family Office. Across each role, one pattern became clear: taxable investors often leave meaningful returns behind due to avoidable tax inefficiencies.

At Twin Oak, Zach focuses on what he calls structural alpha. His approach centers on tax efficiency, time horizon, and thoughtful implementation to help investors preserve compounding, manage drawdowns, and improve after tax results. His perspective reflects both institutional discipline and the practical realities of managing multigenerational capital.

With Ron Diamond guiding the conversation, attendees will gain insight into how leading Family Offices are thinking about ETFs within a broader portfolio context.

Key themes will include:

• How Family Offices evaluate ETFs as long term strategic tools

• The role of tax efficiency in protecting and compounding capital

• Structural alpha and its impact on after tax performance

• Integrating ETFs alongside private market exposure

• Where ETF innovation is creating new opportunities for high net worth investors

For Family Offices, advisors, and capital allocators, this session offers a clear view into how thoughtful structure and disciplined execution can drive stronger outcomes over time.

Register to join the conversation and gain a sharper perspective on how ETFs are being used at the highest levels of wealth management.