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This is completely incorrect. Betterment, for example, adds nothing that individuals can't do themselves, simply by rebalancing and tax-loss harvesting into sim
by tanderson92 10y ago
This is completely incorrect. Betterment, for example, adds nothing that individuals can't do themselves, simply by rebalancing and tax-loss harvesting into similar but not substantially identical ETFs. This way of tax loss harvesting is better because you retain the high diversification of 100s of stocks.
loeg points this out. Wealthfront doesn't do this either.
- obblekk 10y agoThis is only true for small amounts of money. Instead of using a single ETF or Index Fund to invest in U.S. stocks, Wealthfront's Tax-Optimized Direct Indexing directly purchases up to 1,001 individual securities on your behalf — up to 1,000 stocks from the S&P 500® and S&P 1500® Indices and an ETF of much smaller companies. From Wealthfront's website: https://blog.wealthfront.com/introducing-direct-indexing/ https://blog.wealthfront.com/introducing-direct-indexing/ Analysis from bogleheads: https://www.bogleheads.org/forum/viewtopic.php?t=152903 https://www.bogleheads.org/forum/viewtopic.php?t=152903
- tanderson92 10y agoThanks, good point.