How do you transition my portfolio from Stock-level Tax-Loss Harvesting to Smart Beta?

If you previously had a Stock-level Tax-Loss Harvesting account with $500,000 or more in portfolio value, Wealthfront will automatically transition your portfolio to Smart Beta tax-efficiently.

We use three sources of cash to move your account into Smart Beta:

  1. We invest all new money allocated to the U.S. allocation of your portfolio in Smart Beta, including deposits, dividends and cash freed up from Selling Plan or account transfers
  2. We sell stocks that are trading at a loss
  3. We sell stocks that are trading at a gain, but only if the weights of these stocks in your portfolio deviate significantly from the target Smart Beta portfolio weight. Hence, you may realize some amount of capital gains when transitioning into Smart Beta.

These transition rules apply equally to both Wealthfront 500 (WF500) and Wealthfront 1000 (WF1000) clients.

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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.