Expecting a big tax bill from capital gains?
A tax-aware investment strategy with Frec could help you amplify your market returns by taking a stance on the market with a factor tilt and start harvesting significant capital losses to keep more of what you earn.
Your potential tax savings
$178,633
Stock sale proceeds
Reinvested in the market
$1,000,000
Capital gains
Based on a 50% cost basis
$500,000
Tax losses generated this year
From a 250/150 strategy on Frec
$357,267
Taxes owed
Based on a 50% tax rate
$250,000
$71,367
Chosen by employees at
What is a tax-aware investment strategy?
Tax-aware investing strategies can generate significant capital losses that offset your tax bill.
With Frec's Long short direct indexing, you could invest in a diversified index like the Russell 1000 while saving money on your taxes.
Frec does all the
hard work for you.
Create your Frec account and invest in a long short direct index on Frec.
Proceeds of a stock sale could be used to get started.
Frec will automatically make trades to get you tax losses while tracking the performance of an index.
Apply the tax losses you've generated on Frec to offset your capital gains, saving you money on taxes.
Create your Frec account and invest in a long short direct index on Frec.
Proceeds of a stock sale could be used to get started.
Frec will automatically make trades to get you tax losses while tracking the performance of an index.
Apply the tax losses you've generated on Frec to offset your capital gains, saving you money on taxes.
How it works
The mechanics of long short direct indexing
With Frec Long short direct indexing, you can choose a factor tilt to amplify your market returns while generating significant capital losses to offset capital gains.
Frec is the only platform where US investors can open a 250/150 long short account today
Russell 1000 Long short
140/40 leverage
Minimum investment
$100kAnnual fee
+ 0.30% post-tax financing cost
Historical harvest rate
S&P 500® Long short
140/40 leverage
Minimum investment
$100kAnnual fee
+ 0.30% post-tax financing cost
Historical harvest rate
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 financial 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 a platform expert, book a call.