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The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. Nothing in this communication should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Any links provided to other server sites are offered as a matter of convenience and are not intended to imply that Wealthfront Advisers, Wealthfront Brokerage or any affiliate endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise.
All UI screenshots provided are for illustrative purposes only and any performance figures displayed should not be considered representative of actual performance.
1.Nerdwallet and Investopedia (the “Endorsers”) receive cash compensation for referring potential clients to Wealthfront Advisers, LLC (“Wealthfront Advisers”) via advertisem*nts placed on their respective websites. The Endorsers and Wealthfront Advisers are not associated with one another and have no formal relationship outside of this arrangement. Nerdwallet’s opinions are their own. Their ratings are determined by their editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. Nerdwallet ranking as of June 2023. Wealthfront provides cash compensation in connection with obtaining this ranking. Investopedia designed a system that rates robo-advisors based on nine key categories and 49 variables. Each category covers the critical elements users need to thoroughly evaluate a robo-advisor. Learn more about their methodology and review process. Investopedia ranking as of January 2023. Wealthfront provided cash compensation in connection with obtaining this ranking. © 2017-2023 and TM, NerdWallet, Inc. All Rights Reserved.
2. Apple App Store and Google Play Store ratings based on user ratings from February 2014 (Apple) and December 2015 (Google) through October 2023. Ratings compiled by Apple, Inc., and Google, Inc., who receive compensation for hosting our app.
3. Investopedia receives cash compensation from Wealthfront Advisers LLC for sponsored advertising materials. Investopedia is not a client and this is a paid endorsem*nt.
4. The testimonials provided above were provided by current Wealthfront Advisers clients.
Investors should carefully assess the risks associated with bond ETF investments. Bond ETF performance may not precisely mirror the underlying index due to tracking errors from factors like bond weighting differences, transaction costs, and timing. Management fees can affect overall returns. Bond ETFs expose investors to risks, including interest rate risk, potentially leading to capital losses as rising rates decrease underlying bond values. Most bond ETFs lack a fixed maturity date or guaranteed principal repayment at maturity. Bond ETFs may generate capital gains from portfolio rebalancing, potentially resulting in unexpected tax liabilities.
Credit risk is a concern, as bond issuers’ financial health can impact ETF value. Some bond ETFs may use derivatives, introducing counterparty risk where losses can occur if a counterparty fails to fulfill its contractual obligations. Call risk should also be considered, as falling interest rates might prompt callable bond issuers to repay securities before maturity, forcing reinvestment in lower-yield or riskier securities.
Savings accounts are typically FDIC-insured. The Automated Bond Portfolio is covered by SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. It does not provide protection against losses resulting from market fluctuations.
Bond ETFs are less liquid than cash, potentially affecting buying and selling shares at desired prices. Some may prefer the stability and accessibility of savings or deposit accounts despite lower yields.
Equities may offer higher long-term gains than bonds or cash investments, providing capital appreciation and reinvestable dividend income. However, equities present increased risk due to market fluctuations and short-term price volatility. Investors with longer time horizons and higher risk tolerance may allocate a portion of their portfolios to equities, acknowledging the possibility of gains and losses. Investors should weigh these risks before investing. Past performance does not guarantee future results.
Tax loss harvesting may generate a higher number of trades due to attempts to capture losses. There is a chance that trading attributed to tax loss harvesting may create capital gains and wash sales and could be subject to higher transaction costs and market impacts. In addition, tax loss harvesting strategies may produce losses, which may not be offset by sufficient gains in the account and may be limited to a $3,000 deduction against income. The utilization of losses harvested through the strategy will depend upon the recognition of capital gains in the same or a future tax period, and in addition may be subject to limitations under applicable tax laws, e.g., if there are insufficient realized gains in the tax period, the use of harvested losses may be limited to a $3,000 deduction against income and distributions. Losses harvested through the strategy that are not utilized in the tax period when recognized (e.g., because of insufficient capital gains and/or significant capital loss carryforwards), generally may be carried forward to offset future capital gains, if any.
All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Please see our Full Disclosure for important details.
Investment management and advisory services are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and brokerage related products, including the cash account, are provided by Wealthfront Brokerage LLC, a Member of FINRA/ SIPC.
Wealthfront, Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.
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Now, let's move on to the concepts mentioned in the article you provided.
Wealthfront Advisers and Investopedia Rankings
The article mentions that Nerdwallet and Investopedia receive cash compensation for referring potential clients to Wealthfront Advisers, LLC. Nerdwallet's opinions are determined by their editorial team, and their rankings take into account factors such as account fees, investment choices, customer support, and mobile app capabilities Investopedia also rates robo-advisors based on nine key categories and 49 variables, and their rankings are based on their own methodology and review process.
Apple App Store and Google Play Store Ratings
The article states that the Apple App Store and Google Play Store ratings for Wealthfront are based on user ratings from February 2014 (Apple) and December 2015 (Google) through October 2023. These ratings are compiled by Apple and Google, who receive compensation for hosting the app.
Testimonials and Bond ETF Risks
The article mentions that the testimonials provided were given by current Wealthfront Advisers clients. It also highlights the risks associated with bond ETF investments, such as tracking errors, transaction costs, timing, interest rate risk, credit risk, and call risk. It notes that bond ETFs may lack a fixed maturity date or guaranteed principal repayment at maturity, and they may generate capital gains from portfolio rebalancing, potentially resulting in unexpected tax liabilities.
Savings Accounts and Equities
The article states that savings accounts are typically FDIC-insured, while the Automated Bond Portfolio is covered by SIPC, which protects securities customers of its members up to $500,000. It also mentions that bond ETFs are less liquid than cash and that some investors may prefer the stability and accessibility of savings or deposit accounts despite lower yields. It further notes that equities may offer higher long-term gains than bonds or cash investments, but they come with increased risk due to market fluctuations and short-term price volatility.
Tax Loss Harvesting and Risks
The article mentions that tax loss harvesting may generate a higher number of trades and could create capital gains and wash sales, which may be subject to higher transaction costs and market impacts. It also notes that tax loss harvesting strategies may produce losses that may not be offset by sufficient gains in the account and may be limited to a $3,000 deduction against income. The utilization of losses harvested through the strategy depends on the recognition of capital gains in the same or a future tax period and may be subject to limitations under applicable tax laws.
General Disclaimer and Investment Services
The article includes a general disclaimer stating that all investing involves risk, and past performance does not guarantee future performance. It also mentions that investment management and advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser, and brokerage-related products, including the cash account, are provided by Wealthfront Brokerage LLC, a member of FINRA/SIPC.
Please note that the information provided here is based on the snippets from the search results you provided. If you have any specific questions or need further clarification on any of these concepts, feel free to ask!
