Alpha Architect launches another low-distro equity ETF seeded in-kind: ~$470 million

Alpha Architect's "two-step" pitch seems to be working

This article is educational content, not investment, tax, or legal advice. It is not an endorsement of any of the mentioned products. Read each prospectus carefully. Hire an adviser or tax attorney for personalized guidance.

---

Tax Alpha Bulletin Board

Basis Northwest

• Two-day taxable wealth conference

• Seattle, WA - May 2026

• Sign up for updates

Not Advice pod with Andre Nader recorded Friday, Dec 12, 2025.

---

Vanguard is gigantic, and Alpha Architect is relatively tiny, so maybe I’m exaggerating… probably… but Alpha Architect is making a compelling two-step pitch to taxable investors that is hard to ignore

Alpha Architect launches another low-distro equity ETF seeded in-kind: ~$470 million

AAEQ is here.

It launched with nearly $500 million in assets and is the latest low-distro equity ETF sponsored by Alpha Architect.

AAEQ follows AAUS, launched in the summer of 2025 with north of $400 million.

Both were seeded in-kind using a Section 351 transfer.

Get up to speed on how to seed ETFs in-kind using Section 351.

Also check out my write-up on the strategy powering AAUS and AAEQ, and how the low-distro thing works under the hood.

Dividend chasers... YOU are the yield

Below, I describe…

• The “two-step” pitch that is attracting assets

• The composition of AAEQ’s launch assets (with a cool graphic)

• Where Alpha Architect seems to be heading