Yes. The Wealthfront Risk Parity Fund has an expense ratio of 0.25%. By including this strategy, the weighted average annual expense ratio of your portfolio will increase by about 0.03% (please see How do you calculate the incremental cost of Risk Parity?). This reflects a reduction of your existing ETFs in your investment mix and the addition of Wealthfront’s Risk Parity mutual fund. The allocation to Wealthfront‘s Risk Parity mutual fund will not be greater than 20% of your portfolio. There is no change to Wealthfront’s 0.25% annual advisory fee.
The Wealthfront Risk Parity Fund (the “Fund”) is managed by Wealthfront Strategies LLC (formerly known as WFAS LLC), a registered investment adviser and a wholly owned subsidiary of Wealthfront Inc. Wealthfront Strategies LLC receives an annual management fee equal to 0.25% of the Fund’s average daily net assets. Northern Lights Distributors, LLC, a member of FINRA and SIPC, serves as the principal distributor for the Fund. Wealthfront Inc., is not affiliated with Northern Lights Distributors, LLC.
Before investing in the Wealthfront Risk Parity Fund, you should carefully consider the Fund's investment objectives, risks, fees and expenses. This and other information can be found in the Fund’s prospectus. Please read the fund prospectus or summary prospectus carefully before investing. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
In order to add the Wealthfront Risk Parity Fund, we must rebalance your portfolio. As part of this process, if we sell positions at a gain, and you do not have sufficient harvested losses to offset those gains, you’ll pay taxes on the net gain.