Frec Emerges From Stealth with $26.4 Million in Funding To Launch Its Investment Platform To Democratize Wealth Management

Track the performance of the S&P 500, but end up with more money from tax loss harvesting – for the same amount of effort and at a lower cost than robo-advisors. And the first three months are free. Seems too good to be true?

It’s called Frec Direct Indexing.

Learn more

Good morning…

It is an exciting day for a portfolio company of ours Frec.com which came out of stealth today and launched their incredible Direct Indexing products.

I am in the process of switching all my indexing to FREC direct Indexing which is and will be most of my stock market allocations across all the family accounts.

Direct Indexing is simple Indexing that gets you MORE. By more, I mean better than buying an ETF.

Why?

Frec Direct Indexing can help you earn more by unlocking tax savings no matter the market and done for you… automatically.

Here is a simple scenario illustration from the website (head over to learn more):

With Frec Direct Indexing, customers benefit from the following:

Up to an additional 2.11% on top of market returns. Powerful algorithms perform daily tax loss harvesting that can capture up to 45% of the value of an investment in capital losses - or $19 in real tax savings for every $100 deposited. When reinvested, this can increase returns by 2.11%³ annually.

Frec’s license of the S&P indices, enabling them to customize their portfolio by adding or removing companies and sectors.

A flat .10% fee for direct indexing, priced similarly to buying an ETF directly, compared to some robo-advisors charging .25%⁴ for basic index investing, or a wealth advisor, who could charge up to 1%⁵ for direct indexing.

From Mo the founder…

We built Frec for the financially-savvy who want access to more sophisticated products than are currently offered by existing retail investment platforms, and have qualms about working with expensive wealth managers and old-school brokerages with complicated UI,” said Mo Al Adham, founder of Frec. “We made it our mission to build a modern, self-service platform that enables access to advanced financial products, like direct indexing, portfolio lines of credit, and high yield treasury funds to help them stay invested, even in a volatile market.”

Frec today also announced:

Frec Treasury, offering up to 5.02%⁶ on cash. Highly liquid, low-risk, and comes with insurance⁷ - customers can connect their bank account, set a maximum threshold and have excess cash automatically transferred into high earning treasury funds. Customers can also pay credit cards directly from Frec Treasury.

Portfolio lines of credit, enabling customers to borrow up to a certain percentage of their stock holdings, without a complicated setup.⁸

A partnership with AngelList, powering money market funds natively for venture capital funds. AngelList venture funds can earn yield on their cash in money market funds through Frec.

Frec has $26.4 million in seed and Series A funding led by Greylock with participation from Social Leverage and others.

Hit me up of course if you need help or have any questions about the product/company or Direct Indexing.