Hedgewise aims to improve investment returns by addressing inefficiencies like inaccessible strategies, underperforming mutual funds and ETFs, and the impact of commissions and taxes. They use a managed account structure to create custom ETFs, offering benefits like zero trading commissions (except for Alpha products and sub-advisory clients), automatic rebalancing, tax optimization, and risk customization. Hedgewise can invest in various securities and asset classes, requiring clients to allow the use of futures and options contracts.
Fee Structure
Hedgewise charges a percentage of your account's value annually, calculated daily. There are two product types, 'Beta' and 'Alpha'. Alpha products are actively managed and speculative. If you choose Alpha products, the Alpha fee schedule applies to your entire account. Fees cannot be split by product type. The annual fee is based on the amount you invest:
- $100,000 - $1,000,000: 0.7% for Beta, 0.9% for Alpha
- $1,000,000 - $2,000,000: 0.6% for Beta, 0.8% for Alpha
- $2,000,000 and over: 0.5% for Beta, 0.7% for Alpha
Hedgewise requires a minimum monthly fee of $19.99 to cover administrative and trading costs, if the calculated annual fee falls below this amount. For Beta products, Hedgewise covers trading commissions (except for sub-advisory clients). You are responsible for other expenses like ETF fees and bank service fees.