What is a Stock-level Tax-Loss Harvesting 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 Stock-level Tax-Loss Harvesting 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 Stock-level Tax-Loss Harvesting position still accurately tracks the broad US stock market. Placing a security on your restrictions list after we've purchased it means we won't trade it going forward. This means we won't sell the current shares or buy additional shares.

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

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Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. 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.

Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. 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.