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What is a Direct Indexing exclusion list? How does it work?

The stock restrictions list is designed to make sure stocks that you are restricted from trading will never be traded in your Wealthfront account.

If you add a stock that we would normally hold in a Direct Indexing position (such as a company in the S&P 500 or the S&P 1500 index), we will not purchase it on your behalf. Instead, we will buy other stocks from the associated index to make sure that your Direct Indexing position still accurately tracks the broad US stock market.

Please note that trade restrictions may change your risk and expected returns, and impact your portfolio's performance.

 

 

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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 www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com 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.