5 The 21x figure is based on a tax alpha of 2.11% above market performance and Frec’s 0.10% annual fee. The 2.11% projection was generated by Frec’s Direct Indexing Model tracking the S&P 500 and is hypothetical, does not reflect actual investment results, and is not a guarantee of future results. The simulations were run to tax loss harvest on a weekly basis in a ten-year time frame of ninety day increments from 12/17/2003 – 6/10/22 with a $50,000 initial deposit. The simulations averaged at the end of year ten resulted in a 45.1% accumulated tax loss savings that were reinvested with a 42.3% tax rate, and includes Frec’s 0.10% fee, resulting in a 2.11% additional return. Past performance does not guarantee future results.
6 Data as of 09/20/2023. Fees for traditional brokerage refers to the largest U.S. brokerage firms that offer direct-to-consumer direct indexing products. 1.0% for wealth advisors: “What to know about financial costs” U.S. News & World Report, July 27, 2023.
7 Expense ratio data as of 09/20/2023. SPY is an exchange traded fund and not a traditional brokerage firm or wealth advisor. SPY is one of four ETFs that track the S&P 500 index and used as an example because it’s the largest and first ETF to track the S&P 500 index. Information on the other ETFs that track the S&P 500 index can be found at: https://www.etf.com/topics/sp-500.
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