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Updated

How risk parity works in taxable Investment Accounts under $100,000

Taxable Investment Accounts of under $100,000 are not eligible to hold the Wealthfront Risk Parity Fund (WFRPX). If you have included the Risk Parity Fund in your portfolio but don’t currently have $100,000 in your account, the risk parity portion of your portfolio will consist of the following ETFs (or their alternates in the event of tax-loss harvesting):

  • 60% VTI
  • 20% EMB
  • 20% BND 

These ETFs were chosen to best replicate the investment objectives and risk profile of this mutual fund.

Once your account balance reaches $100,000, we’ll begin transitioning your allocation from these ETFs to our Risk Parity Fund. This may take some time, as we aim to buy the Risk Parity Fund and sell your ETFs tax-efficiently.

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