Wealthfront S&P 500 Direct

Upgrade your S&P 500® investing and unlock tax savings on your stock compensation.

Investing in an index of US stocks, like the S&P 500®, is a time-tested strategy for building long-term wealth. But what if that strategy could work even better? With S&P 500 Direct, you can own individual stocks of the S&P 500® index and help lower your tax bill with Tax-Loss Harvesting—especially if you have capital gains from your stock comp or other investments. And, as you might expect, our software handles all the work for you. With a management fee of just 0.09%, you’d pay less than $2 per month on a balance of $20,000.

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Securities shown are for illustrative purposes only, and are not a recommendation to buy or hold.

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The market is beyond your control. But saving money on taxes isn’t.

Consider it a savvy investor’s secret: When a stock dips in value, it can be an opportunity to save money on taxes. Regardless of the market conditions, we can take advantage of stocks that are down to help lower your tax bill. And the less you owe in taxes, the more you could take home in earnings.

For illustrative purposes only.

part 1

Invest in S&P 500® stocks.

With S&P 500 Direct, you’ll own individual stocks that make up the S&P 500® index—some of the largest companies driving the US economy. By owning hundreds of stocks—instead of a single ETF—we’ll help find more opportunities to collect tax savings and lower your tax bill.

part 2

Save money on taxes.

As the market moves, we’ll look for opportunities to turn day-to-day losses into tax savings. At tax time, these savings can help lower your taxes on capital gains and ordinary income—and any losses you don’t use in a given year could translate into future tax savings.

Images are for illustrative purposes only. Actual results will vary.

Invest in stocks of the S&P 500®. Except the stocks you don’t want.

Some stocks you may not want to own. Maybe a stock doesn’t align with your values or you don’t need more equity in your employer. Or maybe you just need to be mindful of certain trading restrictions. Unlike an ETF, you can opt out of any stock in the S&P 500® while you continue to track the index. Just opt out your unwanted stocks when you open your account and we’ll automatically rebalance the weights to keep you in line with the index.

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Tax savings = more money in your pocket.✨

Your S&P 500 Direct portfolio-generated tax savings can help lower the taxes on your capital gains. If you don’t have capital gains, you can still offset up to $3,000 of ordinary income each year. Best of all, the harvested losses you don’t use in a given year can carry forward indefinitely, meaning tax savings for years to come.

See how much money you can save.

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Long-term gains from stock sale

$50,000

S&P 500 Direct portfolio

$100,000

State

Filing status

Annual income

$400,000

Estimated tax savings after year 1

Everyone’s tax situation is unique. In this scenario, we assume that the amount of long-term losses harvested is approximately 4% of your portfolio. These losses are used to offset long-term capital gains, and remaining losses can offset up to $3,000 of your taxable income. Any leftover losses you don’t use in a given year can carry forward indefinitely to generate future tax savings.

This interactive analysis tool is intended for informational purposes only and should not be construed as tax advice. The estimates generated by the Tax Savings Calculator are hypothetical in nature, do not reflect actual results and are not guarantees of future results. Results may vary with each use and over time.

As easy as investing in an ETF. For the same low fee as SPY.

With S&P 500 Direct, you’ll own individual stocks that make up the S&P 500® with the extra benefit of always-on Tax-Loss Harvesting. S&P 500 Direct has a low management fee of just 0.09%—the same as the expense ratio of SPY, a leading S&P 500® ETF. Get started with a minimum investment of $20,000. With a balance of $20,000, that comes out to less than $2 per month in fees.