Frect Direct Indexing is similar to robo-advisors in that our products are automated. Where we differ:
- Own the underlying stocks of the S&P: You own the underlying stock of an index instead of an ETF tracking an index.
- Tax loss harvesting volume: Frec Direct Indexing tax loss harvests all of the underlying stock of an index (500+ for the S&P 500). Other tax loss harvesting providers tax loss between two ETFs (vs. underlying stock).
- Capital losses generated: Frec Direct Indexing harvests 2x more capital losses than ETF-to-ETF tax loss harvesting like Wealthfront, leading to greater tax savings.
- Fees: Most robo-advisors charge 0.25% (Wealthfront and Betterment) whereas Frec charges 0.10%.
- Transparency: See all of the trades we make on your behalf and the resulting gains / losses harvested.
See in depth comparison here.