What factors determine the amount available to borrow?
Any Wealthfront client with at least $25,000 in a taxable Investment Account 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, the Wealthfront Risk Parity Fund, 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.
Portfolio Line of Credit is a margin lending product offered only to clients of Wealthfront Advisers LLC by Wealthfront Brokerage LLC. You can learn more about Wealthfront Brokerage Corporation on FINRA's BrokerCheck.
Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.
Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Margin lending can add to these risks, and investors should carefully review those risks as part of their overall financial strategy. Diversification strategies do not guarantee a profit or protect against loss in declining markets. Past performance does not guarantee future performance. Learn more about Portfolio Line of Credit in the Margin Handbook.
Financial advisory, planning, and investment management services are offered by Wealthfront Advisers LLC (“Wealthfront”), an SEC registered investment adviser. Brokerage products and services offered by Wealthfront Brokerage LLC, member FINRA / SIPC, and a wholly-owned subsidiary of Wealthfront Corporation.
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