Have concentrated positions putting your portfolio at risk?
We'll transition them into a diversified index for you with minimal tax impact.
Chosen by employees at
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.
Why investors choose Frec
Sophisticated investment strategies, direct to you
One platform for your entire portfolio
Create a diversified portfolio of direct indices, earn yield with Treasury, and borrow with our portfolio line of credit.1
Low fees & minimums
While advisors may charge 1% or more, Frec's classic direct index strategies start at 0.09% annually with minimums as low as $20k.
We handle the complexity
We execute trades and generate capital losses for you, but you have the transparency to review trades and compare your portfolio performance to the benchmark ETF anytime.
Your money is secure
Your assets are held in your name at Apex Clearing. Frec is a member of SIPC. Securities in your account are protected up to $500,000. For details, please see www.sipc.org. Apex Clearing also offers excess insurance on every account.
FAQs
Have questions?
Talk to an expert.
Our team of licensed professionals has helped employees at leading tech companies explore their options before funding.
Getting started on Frec is simple — but if you'd rather talk through it with an expert, book a call.