Minimum account sizes for US Direct Indexing and Smart Beta
Any Wealthfront taxable account with at least $100,000 to invest is eligible for US Direct Indexing (formerly known as Stock-level Tax-Loss Harvesting). Any Wealthfront taxable account with $500,000 to invest is eligible for Smart Beta. If you have US Direct Indexing, we will automatically transition your account to Smart Beta when your balance reaches $500,000. Read more about transitioning from US Direct Indexing to Smart Beta here.
Our minimums are based on dollar amounts required to hold a reasonable collection of individual US stocks in a US Direct Indexing and Smart Beta position while continuing to track the performance of the broad US market.
That means that the US Direct Indexing and Smart Beta minimums must be met through cash deposits or assets in your Wealthfront diversified portfolio. Other assets, such as assets you’ve transferred to Wealthfront via a brokerage account transfer and which are still being sold or diversified, can not be used to meet this minimum as those assets can not be used to purchase individual stocks until their sale is completed.
What if market movements push my account balance below the minimum?
If you participate in US Direct Indexing or Smart Beta and your account balance falls below the respective minimum due to market movements, the service will remain on in your account.
Please note that if a withdrawal request causes your account balance to decrease below the minimum, US Direct Indexing and Smart Beta will be disabled in the account and we will sell the individual stocks used to implement US Direct Indexing and purchase VTI to represent US stocks. Tax-Loss Harvesting will remain on in your account, as there is no minimum for Tax-Loss Harvesting.
I transferred securities to Wealthfront from an outside account. Does that affect whether I qualify for US Direct Indexing or Smart Beta?
It might. If you have transferred assets to Wealthfront and we haven’t diversified them yet, we will not apply US Direct Indexing and Smart Beta strategies until your diversified portfolio value exceeds $100,000 or $500,000, respectively.
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