Is Risk Parity considered “active management?”

No. At Wealthfront, we consider “active management” to be the application of judgment to select particular securities or asset classes for your portfolio based on whether they are undervalued or overvalued. All of our PassivePlus investment strategies, including Risk Parity, are time-tested, academically proven, rules-based strategies that do not allow for any circumstantial judgment on our behalf.

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The Wealthfront Risk Parity Fund (the “Fund”) is managed by WFAS LLC, a registered investment adviser and a wholly owned subsidiary of Wealthfront, Inc. WFAS LLC receives an annual management fee equal to 0.50% of the Fund’s average daily net assets. Northern Lights Distributors LLC a member FINRA/ SIPC serves as the principal distributor for the Fund.

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. 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.

There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.