What is Frec?
Frec Direct Indexing brings tax-smart investing to everyday investors—no wealth advisor required. Instead of buying a standard ETF, Frec lets you own the individual stocks inside an index directly, unlocking powerful tax-saving opportunities like automated tax-loss harvesting. This means you keep more of your returns by reducing capital gains taxes over time.
Built with modern technology, Frec makes strategies once reserved for million-dollar hedge fund clients accessible at a fraction of the cost. Whether you're diversifying concentrated stock holdings or building a personalized portfolio from scratch, Frec helps you invest smarter while staying in full control—all with fees as low as 0.09%.
What are the features of Frec?
- Classic Direct Indexing: Own the stocks in major indices (like the Russell 1000) directly and automatically harvest tax losses to lower your tax bill.
- Long Short Direct Indexing: Access advanced strategies previously limited to hedge funds—now available with no $1M minimum.
- Frec Diversify: Turn a large holding of a single stock into a diversified portfolio over time with minimal tax impact.
- Tax-Loss Harvesting Automation: Continuously scan your portfolio to lock in losses and offset gains—saving you thousands annually.
- Personalized Portfolios: Combine multiple direct indices to match your risk tolerance and goals.
- High-Yield Treasury Cash: Earn competitive interest on uninvested cash through U.S. Treasury-backed accounts.
- Portfolio Line of Credit: Borrow against your portfolio without selling assets or triggering taxes.
What are the use cases of Frec?
- An employee with concentrated company stock uses Frec Diversify to gradually build a diversified portfolio without a huge tax hit.
- A self-directed investor wants ETF-like exposure but with better after-tax returns—so they choose Classic Direct Indexing.
- Someone inheriting a large stock position uses Frec to minimize capital gains while transitioning into a market-tracking portfolio.
- An angel investor seeks advanced long/short strategies without paying hedge fund fees or meeting high minimums.
- A retiree wants to offset ordinary income using harvested capital losses (up to $3,000/year) to reduce taxable income.
- A busy professional automates tax-efficient investing and earns yield on idle cash—all in one app.
How to use Frec?
- Sign up for a Frec account (supports individual, joint, trust, and business accounts).
- Choose a direct indexing strategy: Classic, Long Short, or use Diversify for existing concentrated stocks.
- Fund your account via bank transfer or by transferring existing securities.
- Set your portfolio allocation across multiple indices if desired.
- Enable auto-conversion to tax-efficiently sell legacy holdings and reinvest proceeds.
- Track your tax savings and portfolio performance in real time via web or mobile app.
