Sounded like the fee is 0.4% and they are really pushing the tax advantages of writing off losses…

What's the downside over a regular index fund?

The downside is a higher fee than an Index fund. The upside is supposed to be active stock picks vs rigid indexing. If you have enough money buy some of each (managed accounts have entry levels) and after 2 years compare the results. Add to the better performer.

sam callahan said:

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Sounded like the fee is 0.4% and they are really pushing the tax advantages of writing off losses…

What's the downside over a regular index fund?

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The advantage is having your own cost basis for every stock inside the fund. Don't get that with an ETF. It's definitely better and more flexible tax wise

I did this last year with Fidelity as a test. I think I'm paying closer to 60bps for a tax advantage account. They purchased 200 individual stocks to start and make adjustments along the way. They take small losses along the way to net out the dividends earned. They performed in line with the indexes, and the tax hit should be little to none.

Obviously, you could buy an index, hold it, and pay little to no taxes. I guess this will help if I need to pull money out at some point. I could sell the losers and small gains to pay little taxes.

I wouldn't recommend or not recommend.