How does Risk Parity affect my eligibility for Portfolio Line of Credit?

We invest your risk parity allocation in a Wealthfront-managed mutual fund. We cannot use the mutual funds as collateral, so your available Portfolio Line of Credit will decrease by the percentage allocated to risk parity.

The amount you can borrow will change from 30% of your total portfolio value to 30% of the value not invested in Risk Parity. Depending on your risk score, which determines the allocation to Risk Parity, you’ll be eligible to borrow 24 - 28% of your portfolio’s value.

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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.