What is Daily Tax-Loss Harvesting? How is it different from Tax-Loss Harvesting in general?

Daily Tax-Loss Harvesting is a service offered by Wealthfront that allows us to check your account for Tax-Loss Harvesting opportunities on a daily basis.

Tax-Loss Harvesting as traditionally practiced and as offered by non-software-based financial advisors typically only checks your account for Tax-Loss Harvesting opportunities once a year.

That means traditional Tax-Loss Harvesting misses many opportunities to harvest tax-losses and generate additional performance through Tax Alpha relative to Daily Tax-Loss Harvesting.

For example, our blog post details the Tax-Alpha benefit generated for Wealthfront clients in 2013 on a monthly basis.

You’ll note that despite an overall increase in the stock market in 2013, Daily Tax-Loss Harvesting was able to generate additional performance through tax alpha for our clients during a market downturn during the summer.

Waiting until the end of the year to Tax-Loss Harvest would have missed that opportunity and likely would have harvested no losses for 2013 given the strong performance of the market.


Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at All securities involve risk and may result in some loss. For more information please visit or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

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