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Fees
Posted in About Us on 2015-12-12

Overview

Traditionally, investors must pay an annual fee to an ETF or mutual fund as well as trading commissions to their brokerage. With Hedgewise, clients pay a fee that is similar or less than competitive funds which also covers all trading commissions. In addition, many of our products include other benefits, such as tax optimization or risk customization. We believe this presents a compelling value proposition for our clients which we are able to offer due to our unique account structure.

Annual Fee

Assets Under Management (AUM) Annual Fee
$10,000 - $1,000,0000.7%
$1,000,000 - $2,000,0000.6%
$2,000,000 and over0.5%

Hedgewise charges a percentage of each client's Net Liquidation Value ('NLV') as an annualized percentage, applied on a daily basis (252 business days are applied in this calculation method). NLV is equal to: Total cash value + stock value + securities options value + bond value + fund value. The annualized percentage fee varies depending on total AUM.

Example: Your previous day ending NLV is $100,000. Your fees for the given day will be: 0.7%*$100,000/252=$2.78.

Keep in mind that this fee is similar to one you might automatically pay to a competitive ETF or mutual fund through an expense ratio, but that our service includes access to a number of additional benefits.

Hedgewise does not charge any account sign-up or termination fee. All Interactive Brokers accounts opened through Hedgewise will not be charged a monthly minimum or IRA custodial fee. Hedgewise will also pay for or reimburse all trading commissions (excepting sub-advisory clients). Clients are responsible for all other expenses related to trading the assets in their account, including, but not limited to, ETF fees, bank service fees, and debit balances.

Note that fee discounts apply to all funds under management. For Investment Advisers, total AUM includes all sub-advisory accounts managed with Hedgewise. However, sub-advisory accounts are not eligible for fee reimbursement, including trading commissions, monthly minimum fees, and IRA custodial fees.

Fees will be deducted directly from a client's account in the month following the month which just ended, or immediately upon termination of an account for the amount of fees outstanding. Upon request, clients may be invoiced separately.

Minimum Monthly Fee

For smaller accounts, Hedgewise must charge a minimum monthly fee of $19.99 to cover basic administrative and trading costs. We believe this fee is reasonable given that we cover all trading commissions for most clients.

This minimum only applies if the annual fee calculation as described above falls below this amount.

Disclosure

This information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Hedgewise makes no warranties and is not responsible for your use of this information or for any errors or inaccuracies resulting from your use. To the extent that any of the content published may be deemed to be investment advice or recommendations in connection with a particular security, such information is impersonal and not tailored to the investment needs of any specific person. Hedgewise may recommend some of the investments mentioned in this article for use in its clients' portfolios. Past performance is no indicator or guarantee of future results. This document is for informational purposes only. Investing involves risk, including the risk of loss. Information in this document has been compiled from data considered to be reliable, however, the information is unaudited and is not independently verified. Performance data is based on publicly available index or asset price information and does not represent a live portfolio except where otherwise explicitly noted. All dividend or coupon payments are included and assumed to be reinvested monthly. When live client data is shown, it includes all fees, commissions, and other expenses incurred during management. Only performance figures from the earliest live client accounts available or from a composite average of all client accounts are used. Other accounts managed by Hedgewise will have performed slightly differently than the numbers shown for a variety of reasons, though all accounts are managed according to the same underlying strategy model.

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