Nasdaq-100 Index® now available on Frec

Following our recent milestone of passing $1.5 billion in customer assets, you can now direct index the Nasdaq-100 Index® on Frec, bringing our supported index count to 26.

While most investors gain exposure through ETFs that track the index, holding a single fund share leaves significant tax savings on the table. Direct indexing with Frec lets you own the underlying stocks directly to harvest individual losses.

Benefits of Frec direct indexing

When you invest in an ETF that tracks the index, you only see the net performance of the entire fund. If the index is up overall, any losses from individual declining stocks inside the fund are locked away where you can’t use them. Direct indexing solves this by placing the individual underlying shares directly in your account. When specific stocks drop in value, Frec’s automated algorithm systematically sells those positions to harvest tax losses, then immediately buys similar holdings to keep your market exposure intact.

These harvested losses can be used to offset capital gains across your broader portfolio such as vested RSUs, real estate sales, or stock gains from other accounts, and up to $3,000 of ordinary income per year. Any unused tax losses roll forward indefinitely to offset future gains. 

Beyond loss harvesting, direct indexing gives you total portfolio control. If you work in tech or hold concentrated stock in a specific company, you can customize your index to add, exclude, or adjust the weights of up to 25 individual stocks and 5 sectors. You can learn more about the benefits of direct indexing here. 

Frec does not provide tax advice, and we recommend speaking with a tax advisor about your specific situation.

Getting started

The Frec Classic Nasdaq-100® has a 0.12% annual fee and a $20,000 minimum investment. 

Whether you are just opening a Frec account, funding an existing account, or shifting strategies from another brokerage, getting started is simple and flexible.

• Fund with cash. Move cash into your Frec account via ACH or wire, then start your direct index.
• Fund with stocks or ETFs. Use assets already in your self-managed Frec account, transfer assets from another brokerage (typically 4-6 days), or transfer an existing Nasdaq-100 direct index you hold elsewhere. You can use a mix of cash, stocks, and ETFs to fund a single direct index.

For Frec customers who already hold direct indices, adding a Classic Nasdaq-100® is seamless. If there is significant overlap between an existing strategy and a new index, Frec will transition the existing index into the new index tax efficiently for wash sales and trading efficiencies. We’ll show you the estimated capital gains impact beforehand so you can make an informed decision. 

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Nasdaq®, Nasdaq-100 Index®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Frec. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).