The Wealthfront tax-loss harvesting procedure involves the following steps: (1) monitor the portfolio daily to identify opportunities to harvest losses on ETFs representing each asset class; (2) sell an ETF trading at a loss; (3) replace the sold ETF with an alternative ETF that tracks a different but highly correlated index to maintain portfolio risk and return characteristics; (4) hold the alternative ETF for a minimum of 30 days to avoid wash sales; (5) sell the alternative ETF only when it can be sold for a loss to generate additional tax-loss harvesting benefit.

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