{"id":7627,"date":"2017-06-15T10:45:55","date_gmt":"2017-06-15T17:45:55","guid":{"rendered":"http:\/\/canary.kcprod.info/blog\/?p=7627"},"modified":"2022-01-11T17:12:29","modified_gmt":"2022-01-12T01:12:29","slug":"introducing-advanced-indexing","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/introducing-advanced-indexing\/","title":{"rendered":"Giving You An Edge"},"content":{"rendered":"

Wealthfront is built on the philosophy<\/a> that passive investing is the key to long-term success. But we always try to go above and beyond to help your portfolio perform better. In other words, we try to give you an edge.<\/p>\n

To do that we first launched Tax-Loss Harvesting, which takes advantage of movements in the market to lower your tax bill without disrupting your overall investment strategy. Then we built Stock-level Tax-Loss Harvesting, an enhanced form of Tax-Loss Harvesting that looks for movements within individual stocks to lower your tax bill even more. Today we\u2019re excited to announce our newest investment feature: Smart Beta.<\/strong><\/p>\n

\u00a0<\/strong>An improvement on a strategy commonly referred to as \u201cSmart Beta\u201d, Smart Beta works to increase your returns by weighting the individual securities in your portfolio more intelligently. Academic research shows that stock returns are determined by their exposure to \u201cfactors,\u201d or common sources of risk. By optimizing the portfolio\u2019s exposure to a collection of time-tested factors, our research team was able to deliver a strategy<\/a> that can improve returns, while closely tracking the performance of the broad index. And our expert technology enables this to happen automatically, without any effort on your part.<\/p>\n

Smart Beta is available now to clients with at least $500,000 in their Wealthfront taxable investment account. Here are the primary benefits of Smart Beta:<\/p>\n

It\u2019s tax-efficient<\/strong><\/h2>\n

Because Smart Beta is paired with Stock-level Tax-Loss Harvesting, we\u2019re able to minimize the impact of taxes on your excess returns. No other Smart Beta service or fund is able to do this.<\/p>\n

It\u2019s multifactor<\/strong><\/h2>\n

While there are many investment factors to consider when assessing an individual security, 95% of Smart Beta ETFs only use one factor[1]<\/sup>. But our research team analyzed the data and determined that by diversifying across factors, you can improve your returns, keep the risk of your portfolio unchanged, and maximize the chances of outperforming a simple, cap-weighted index.<\/p>\n

It has no fee<\/strong><\/h2>\n

Smart Beta is available for no additional fee above and beyond the standard Wealthfront advisory fee. This is significant, as no other issuer of a factor weighted index funds does this. In fact, they often charge an incremental fee at least equal to the benefit of the feature. With Smart Beta all of the benefit goes to you.<\/p>\n

Putting it all together<\/strong><\/h2>\n

With the addition of Smart Beta, we now have three unique value added investment features that you can\u2019t find combined anywhere else. So today we\u2019re also excited to announce that these features now live under the name PassivePlus\u00ae<\/strong>.<\/p>\n