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Wealthfront exclusives (US Direct Indexing, Smart Beta, the Risk Parity Fund)

Wealthfront exclusives (the Risk Parity Fund, US Direct Indexing, and Smart Beta) are rules-based investment offerings that are rooted in academic research and have withstood the test of time. They aim to deliver clients more value over buying and holding an index fund. These offerings can be applied to taxable individual, joint, and trust Investment Accounts.

  • Tax-Loss Harvesting is designed to reduce your tax bill by capturing investment losses due to movements in the market and is available for all account sizes. Learn more.
  • US Direct Indexing is designed to further reduce your tax bill by capturing losses on individual stocks within an index, not just the index itself. It activates when your account reaches $100,000. Learn more.
  • Risk Parity Fund aims to increase your risk-adjusted returns in a wide range of market environments through an enhanced asset allocation strategy. It activates when your account reaches $100,000. Learn more.
  • Smart Beta is designed to increase your expected return by weighting the stocks in your portfolio more intelligently. If you already have US Direct Indexing, Smart Beta activates when your account reaches $500,000. Learn more.

To learn more about adding these offerings to your account, see this article.

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The PassivePlus investment features include Tax-Loss Harvesting, Stock-level Tax-Loss Harvesting, Smart Beta, and Risk Parity. These strategies, along with portfolio rebalancing, can lead to high levels of trading and the effectiveness of any strategy in reducing tax liability depends on an investor’s complete tax and investment profile. Investors are encouraged to consult their personal tax advisors regarding their personal circumstances and any outcomes/consequences that may result from any investment strategy.

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. Learn more about Wealthfront’s PassivePlus investment features.

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.

PassivePlus® is a registered trademark and property of CSSC Investment Advisory Services, Inc. (“CSSC”) and is used under license. CSSC and Wealthfront are not affiliated companies.

The Wealthfront Risk Parity Fund (the “Fund”) is managed by WFAS LLC, a registered investment adviser and a wholly owned subsidiary of Wealthfront, Inc. WFAS LLC receives an annual management fee equal to 0.50% of the Fund’s average daily net assets. Northern Lights Distributors LLC a member FINRA/ SIPC serves as the principal distributor for the Fund.

Before investing in the Wealthfront Risk Parity Fund, you should carefully consider the Fund's investment objectives, risks, fees and expenses. This and other information can be found in the Fund’s prospectus. Please read the fund prospectus or summary prospectus carefully before investing. In order to add the Wealthfront Risk Parity Fund, we must rebalance your portfolio. As part of this process, if we sell positions at a gain, and you do not have sufficient harvested losses to offset those gains, you’ll pay taxes on the net gain.

There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.

3268-NLD-3/5/2018