Wealthfront calculates the annualized 'since inception' tax-loss harvesting yield for a client cohort by: (1) aggregating clients into cohorts based on their first year of using the service (vintage) and their risk score, (2) computing the aggregate losses harvested within the cohort's portfolios on each day, (3) dividing those daily losses by the aggregate portfolio balance of the cohort to get the daily harvesting yield, (4) averaging the daily harvesting yield figures, and (5) multiplying the result by 252 trading days.

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 (1)

• Wealthfront entity