Wealthfront executes a tax-loss harvesting trade when the expected benefit outweighs the associated costs by performing two steps: (1) selling the specific ETF lot to recognize a loss, and (2) purchasing the same dollar amount of a similar, but not substantially identical, ETF to maintain the desired asset class exposure.

Authors

• Person: Not available Organization: Wealthfront
  Wealthfront Tax-Loss Harvesting - Methodology

Sources

• Wealthfront Tax-Loss Harvesting - Methodology research.wealthfront.com Wealthfront via serper

Referenced by nodes (2)

• tax-loss harvesting concept
• Wealthfront entity