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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 indicate you want to hold the Risk Parity Fund but don’t currently have $100,000 in your account, we take a rules-based approach to constructing your portfolio depending on how you added risk parity to your account. 

If you have a recommended portfolio that you opened before April 2021, and you previously opted in to the Risk Parity Fund

If you opened your Investment Account before April 2021, are using a recommended portfolio, and opted into an investment strategy that includes the Risk Parity Fund, then we automatically define portfolio allocations for you – both below and above the $100,000 minimum. The allocation above $100,000 will include the Risk Parity Fund, and the allocation below $100,000 will not. 

If you opened your account after April 2021 or have customized your portfolio

If you customized your portfolio or you opened your account after April 2021, your account won’t automatically include risk parity but you can add it following the instructions here

Below the $100,000 minimum,  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 

Once your account balance reaches $100,000, we will replace these ETFs with our Risk Parity Fund. These ETFs were chosen to best replicate the investment objectives and risk profile of this mutual fund.

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