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Comment by lyrrad

There is financial friction involved.

As I understand it, this product involved using fractional shares to try to adhere to an index, while using tax loss harvesting to optimize for tax.

Fractional shares cannot be transferred between brokerages and are generally sold when transferring brokerages. If you owned on average, half a share of the largest 250 US companies, you'd may need to sell about $30,000 in shares, which could result in an unexpected tax bill.

There are large brokerages and companies offering similar direct indexing products, generally at a higher cost. However, I expect those products are less likely to be shut down.

parent lyrrad 1 year ago

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