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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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