Frec

What is Frec?

Frec is a modern investment platform that democratizes access to sophisticated direct indexing strategies traditionally reserved for high-net-worth investors. It enables users to own individual stocks within major indices like the S&P 500, providing enhanced tax efficiency through daily, algorithm-driven tax-loss harvesting at the individual stock level. Frec offers customizable portfolios with options to exclude or add stocks and sectors, all at a competitive flat advisory fee starting at 0.10%. Additional features include portfolio lines of credit and high-yield treasury cash management, empowering investors with more control, transparency, and cost-effective wealth management tools.

Key Features

• 100% Direct Indexing

  Invest directly in individual stocks of major indices such as the S&P 500 with nearly all invested dollars indexed for maximum tax efficiency.

• Advanced Daily Tax-Loss Harvesting

  Utilizes cutting-edge algorithms and MSCI’s Barra Risk Model to identify daily tax-loss harvesting opportunities at the stock level, delivering up to twice the tax loss harvesting compared to ETF-level approaches.

• Customizable Portfolios

  Choose from 14 different indices and tailor your portfolio by excluding up to two sectors and adding or excluding individual stocks, with flexible dividend allocation options.

• Low and Transparent Fees

  Flat advisory fees starting at 0.10%, with no additional ETF expense ratios, making direct indexing affordable and transparent.

• Portfolio Line of Credit

  Access cash by borrowing against up to 70% of your portfolio at competitive rates without selling your investments.

• High-Yield Treasury Cash Management

  Earn competitive interest rates on idle cash with a highly liquid, low-risk treasury fund integrated into the platform.

Use Cases

• Tax-Efficient Investing : Investors seeking to reduce capital gains taxes through frequent, automated tax-loss harvesting at the individual stock level.
• Portfolio Customization : Investors wanting to tailor index exposure by excluding sectors or stocks that do not align with their values or investment goals.
• Cost-Conscious Investors : Individuals looking for low-fee direct indexing alternatives to traditional robo-advisors and wealth managers.
• Access to Liquidity : Investors needing flexible access to cash without liquidating assets via portfolio lines of credit.
• Cash Management : Users looking to maximize returns on idle cash with insured, high-yield treasury funds.

FAQs