Diversify your stocks tax-efficiently
Bring your concentrated stocks and we'll transition
them into a diversified index for you with minimal
tax impact.
Reduce risk on Day 1
We'll build a portfolio around your concentrated stocks to balance out your market exposure.
Minimize your taxes
We'll harvest losses from your portfolio and use them to sell your concentrated stocks.
Fully automated
End up with a personalized and diversified index tax-efficiently, without any hard work on your part.
How does Frec Diversify work?
Learn how Diversify can help you reduce your investment risk while saving on taxes.
Frec Diversify does all
the hard work for you
Day 1
Reduce your risk immediately.
We build long and short overlays around your concentrated stocks to balance out your portfolio risk.
Diversifying...
Sit back and relax.
The overlays harvest tax losses that offset gains from selling your concentrated stocks.
Diversified
Get a diversified index.
End up with a diversified index with minimal tax impact.
Day 1
Diversifying...
Diversified
Reduce your risk immediately.
We build long and short overlays around your concentrated stocks to balance out your portfolio risk.
Sit back and relax.
The overlays harvest tax losses that offset gains from selling your concentrated stocks.
Get a diversified index.
End up with a diversified index with minimal tax impact.
See how Frec Diversify compares
Diversify
Sell and pay taxes
Exchange funds
Minimal tax impact
No lock-ups
Equities-only diversification
Instant access, no waitlist
Customization
Time horizon
Based on 50% cost basis
1-5 years
Immediate
7 years
Annual fees
0.60%-1.10%
plus financing cost*
-
0.70%-2.00%plus administrative fees**
*Post-tax financing cost is gross financing cost minus tax deductions from financing expenses using a 40% marginal tax rate. Actual after-tax costs depend on individual tax circumstances, consult your tax advisor. As a percentage of total assets, pre-tax financing costs are 0.50% for 140/40, 0.95% for 200/100.
**Based on data as of 03/26/2026: Most exchange funds charge approximately 0.70% - 2.00%, with lower fees available at higher contribution levels. All exchange funds are required to maintain 20% in illiquid assets that tend to have additional management fees along with other costs.
Available now
Getting started is easy
Just bring over your concentrated stocks, set up your direct index, and we'll handle the rest.
(01)
Create your account
Open a Frec account in minutes. We support individual, joint, trust, and business accounts.
(02)
Transfer stocks
Connect your brokerage securely via Plaid and transfer your concentrated stocks to Frec. Your stocks are not sold along the way, and your cost basis comes over too.
(03)
Set up Diversify
Choose your index and the stocks you want to diversify. Then customize by adding, excluding, or adjusting the weights of individual stocks or sectors.
(04)
Project your timeline
We'll estimate approximately how long it'll take to fully diversify your concentrated stocks.
(05)
Diversify over time
We'll do the heavy lifting for you. Watch as your stocks diversify, all while having the transparency and control you need.
