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What factors determine the amount available to borrow?
Any Wealthfront client with at least $25,000 in market value or in net deposits in either a Taxable Automated Index Investing Account, Automated Bond Portfolio, or S&P 500 Direct Portfolio is eligible to borrow money using a Portfolio Line of Credit. The size of your Wealthfront account determines how much is available for you to borrow.
The amount you can borrow is roughly equal to 30% of the value of your diversified portfolio, excluding cash positions, holdings in cryptocurrency trusts and certain lower volume securities. You can borrow up to a maximum of $1.5 million in the Wealthfront account associated with the credit line. Keep in mind, Wealthfront does charge interest on the outstanding balance in a Portfolio Line of Credit.
Portfolio Line of Credit is a margin lending product offered exclusively to clients of Wealthfront Advisers by Wealthfront Brokerage LLC. You should consider the risks and benefits specific to margin when evaluating your options. Learn more about these risks in the Margin Handbook. PLOC eligibility is subject to a minimum account balance which is subject to change.
Investment management and advisory services are offered by Wealthfront Advisers LLC, an SEC registered investment adviser. Brokerage products and services offered by Wealthfront Brokerage LLC, member FINRA / SIPC.
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