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What’s the difference between Stock-level Tax-Loss Harvesting and Smart Beta?

Stock-level Tax-Loss Harvesting uses individual stocks to track the movement of the broad US stock market instead of a single ETF. By doing so, it can take advantage of movements in individual stocks to harvest investment losses and may lower your tax bill. Stock-level Tax-Loss Harvesting is an enhanced form of our Tax-Loss Harvesting strategy.

Smart Beta also uses individual stocks to track the movement of the broad US stock market instead of a single ETF. However, rather than hold the individual securities solely in proportion to their market capitalization, the individual security are weighted across multiple factors to increase the expected after-tax return of the portfolio.

For more details, see the Smart Beta White Paper.

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Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.

Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.