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What is the collateral for my Portfolio Line of Credit?
Collateral is the asset that is used to secure a loan. If the value of your securities fall below a certain level, your collateral can be liquidated in order to repay the balance in your Portfolio Line of Credit. To learn more about when this would happen, see here.
Assets in Taxable Automated Index Investing Accounts, Automated Bond Portfolios, or S&P 500 Direct Portfolios, excluding cash positions, certain lower volume securities, holdings in cryptocurrency trusts, are eligible collateral.
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.
The S&P 500® index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Wealthfront Advisers LLC. Standard & Poor’s®, S&P®, S&P 500®, US 500 and The 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Wealthfront Advisers LLC. Wealthfront’s S&P 500 Direct Portfolio is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® index.
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