{"id":17842,"date":"2025-10-06T08:03:13","date_gmt":"2025-10-06T15:03:13","guid":{"rendered":"https:\/\/canary.kcprod.info/blog\/?p=17842"},"modified":"2025-10-06T10:25:33","modified_gmt":"2025-10-06T17:25:33","slug":"introducing-nasdaq-100-direct","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/introducing-nasdaq-100-direct\/","title":{"rendered":"Introducing Wealthfront\u2019s Nasdaq-100 Direct"},"content":{"rendered":"\n<p>For many investors, the Nasdaq-100 Index\u00ae is synonymous with innovation. This index contains the 100 largest domestic and international non-financial companies listed on the Nasdaq exchange and spans sectors including technology, healthcare, communications, and more. Investing in Nasdaq-100\u00ae ETFs like QQQ\u00ae and QQQM has long been a popular and convenient way to get exposure to some of the buzziest and most growth-oriented companies today, including Nvidia, Apple, and Meta, just to name a few. From its inception on January 31, 1985 through the end of 2024, the index has grown at an average rate of <a href=\"https:\/\/www.nasdaq.com\/articles\/nasdaq-100-indexr-celebrates-40-years-innovation\">14.25% annually<\/a> (using total return).<\/p>\n\n\n\n<p>Today, we\u2019re thrilled to announce that Wealthfront has built an even better way to invest in the stocks that make up this celebrated index. <a href=\"https:\/\/www.wealthfront.com\/nasdaq100-direct\"><strong>Wealthfront\u2019s<\/strong> <strong>Nasdaq-100 Direct<\/strong><\/a><strong> is designed to offer similar performance to a Nasdaq-100<\/strong>\u00ae<strong> ETF plus valuable tax savings\u2014all for a 0.12% annual advisory fee. This is less than the expense ratio for any Nasdaq-100<\/strong>\u00ae<strong> ETF, including QQQ<\/strong>\u00ae<strong> or QQQM. <\/strong>And not only is Nasdaq-100 Direct less expensive than an ETF, it is also the first-ever product to offer a direct indexing strategy for the Nasdaq-100 Index\u00ae to retail investors.<\/p>\n\n\n\n<p>Like <a href=\"https:\/\/www.wealthfront.com\/blog\/introducing-sp500-direct\/\">Wealthfront\u2019s S&amp;P 500 Direct<\/a>, Nasdaq-100 Direct can be especially valuable if you have (or expect to have) capital gains to offset from selling company RSUs and other stock.<strong> <\/strong>For an overview of the benefits of Nasdaq-100 Direct, check out the video below:<\/p>\n\n\n\n<iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/Qb6D9N9O9go?si=rmOWuqC3AJVOvAy1\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does Nasdaq-100 Direct work?<\/strong><\/h2>\n\n\n\n<p>A Nasdaq-100 Direct portfolio directly holds individual stocks that make up the Nasdaq-100 Index\u00ae in your Wealthfront account. (This strategy is often called \u201cdirect indexing.\u201d)&nbsp; Next, it applies Wealthfront\u2019s automated Tax-Loss Harvesting, which is designed to turn losses into tax savings to improve your after-tax returns.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1356\" height=\"758\" src=\"https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2025\/10\/image.png\" alt=\"\" class=\"wp-image-17844\" srcset=\"https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2025\/10\/image.png 1356w, https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2025\/10\/image-640x358.png 640w, https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2025\/10\/image-948x530.png 948w, https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2025\/10\/image-768x429.png 768w\" sizes=\"auto, (max-width: 1356px) 100vw, 1356px\" \/><\/figure>\n\n\n\n<p>The Nasdaq-100 Index\u00ae is a natural fit for tax-toss harvesting because of its higher volatility compared to broader indices\u2014but you can\u2019t get this benefit from just holding a Nasdaq-100\u00ae ETF. That\u2019s because ETFs are prevented by the Internal Revenue Code and the Investment Company Act of 1940 from passing on tax losses to investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax benefits of Nasdaq-100 Direct<\/h2>\n\n\n\n<p>Tax-loss harvesting is a strategy long used by wealthy and institutional investors to lower their tax bills and keep more of what they earn. It involves selling investments that have declined in value, \u201charvesting\u201d the loss, and then buying similar investments\u2014all the while maintaining the portfolio\u2019s overall strategy (including the desired levels of risk and return).&nbsp;<\/p>\n\n\n\n<p>Harvested losses can then be used to offset capital gains (like gains from RSUs or other stock you have sold) and up to $3,000 of ordinary income (like your paycheck). On top of this, any unused losses in the current year can be carried forward indefinitely to offset capital gains and ordinary income in future years. That is, your harvested losses never expire.<\/p>\n\n\n\n<p>To better understand the potential tax benefits of Nasdaq-100 Direct, we think it\u2019s helpful to look at the performance of our <a href=\"https:\/\/research.wealthfront.com\/whitepapers\/stock-level-tax-loss-harvesting\/\">US Direct Indexing product<\/a>, which uses the same Tax-Loss Harvesting methodology and software, but seeks to track a different index. We believe that Nasdaq-100 Direct could offer significant value in excess of what an investor could get from just owning a Nasdaq-100\u00ae ETF.<\/p>\n\n\n\n<p>When managing the portfolio, we balance Tax-Loss Harvesting with the competing goal of generating similar performance to&nbsp; the Nasdaq-100 Index\u00ae. Here\u2019s what that looks like in practice: If a company drops in value, we might sell some or even all of the portfolio\u2019s position in that stock. Deviating from the index\u2019s weight in that stock increases the potential for a difference in pre-tax return. To help address this, we may use cash raised from the sale to purchase stocks that are in the same industry or otherwise highly correlated with the stock we sold to reduce the expected difference.<\/p>\n\n\n\n<p>The minimum to get started with Nasdaq-100 Direct is $5,000, but investing more means you\u2019ll hold more individual stocks, which translates to more opportunities for our software to harvest losses on your behalf. You can learn more about the portfolio composition and strategy in <a href=\"https:\/\/research.wealthfront.com\/whitepapers\/s-p-500-direct\/\">our white paper<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Build wealth on your own terms<\/h2>\n\n\n\n<p>When we <a href=\"https:\/\/www.wealthfront.com\/blog\/introducing-sp500-direct\/\">launched Wealthfront\u2019s S&amp;P 500 Direct<\/a> back in December of 2024, we were delighted by the enthusiastic response from clients\u2014we immediately knew we\u2019d built something unique and valuable. We\u2019re proud to bring the power of our Tax-Loss Harvesting to another prominent index, this time for less than the expense ratio of any ETF that tracks it.&nbsp;<\/p>\n\n\n\n<p>Direct indexing (the industry term coined by Wealthfront in 2013 for directly owning the stocks that comprise an index fund to enable tax-loss harvesting) is offered by some financial advisors for annual fees of up to 1%, but Wealthfront uses automation to make it readily available to a much broader audience, and for significantly less cost. We\u2019re excited to offer another powerful <em>and<\/em> accessible direct indexing product to help you reach your financial goals, whatever they may be.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For many investors, the Nasdaq-100 Index\u00ae is synonymous with innovation. This index contains the 100 largest domestic and international non-financial companies listed on the Nasdaq exchange and spans sectors including technology, healthcare, communications, and more. Investing in Nasdaq-100\u00ae ETFs like QQQ\u00ae and QQQM has long been a popular and convenient way to get exposure to [&hellip;]<\/p>\n","protected":false},"author":10000,"featured_media":17855,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1360],"tags":[],"coauthors":[2515],"class_list":["post-17842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Introducing Wealthfront\u2019s Nasdaq-100 Direct | Wealthfront<\/title>\n<meta name=\"description\" content=\"Meet Wealthfront\u2019s Nasdaq-100 Direct: A new way to invest in Nasdaq-100\u00ae stocks and unlock tax savings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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