How will Wealthfront reallocate my portfolio to add Risk Parity?

In order to minimize trading costs and the realization of capital gains, we reallocate your account to add Risk Parity gradually. The sale of securities held at a gain is a taxable event, and the portfolio transition may increase your taxes if the realized capital gains exceed the sum of losses harvested in the current year and loss carryforwards from previous years.

Due to the gradual transition, your allocation may differ from your target allocation for a period of time. When we invest your deposits and dividends or conduct tax-loss harvesting, we’ll use these opportunities to accelerate the transition to your new asset allocation.

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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.