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ETFmatic launches tax-loss harvesting feature

The European robo advisor is catching up to its US counterparts.

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ETFmatic is to launch a capital gains harvesting feature this week to help its clients optimise their investments against tax consequences, and to reduce the need for aggressive asset allocation rebalancing.

The feature will work by identifying and selling those ETFs which have increased in value, and replacing them with similar ETFs that carry the same asset allocation exposure.

The platform is due to roll out capital gains harvesting to clients in 32 EU states, with initial availability going to eligible clients with portfolios of £50,000 or equivalent and above.

Luis Rivera, CEO and co-founder of ETFmatic, commented: “Investors in Europe deserve cost effective portfolio management with asset allocations that make sense to them. Our aim is to offer clients more of the kinds of services that have historically only been available to individuals with several million to invest.”

US robo advice giants Betterment and Wealthfront introduced tax-loss harvesting features back in 2009, and so it would seem Europe is only just catching up to the investment strategy.

ETFmatic is keen to stress that it will not be planning to offer any tax planning services or advice to accompany the feature any time soon. It does, however, hope that this latest development will help robo advice gain traction in the European market.

“Since our launch two years ago, we have continuously been developing new solutions which add further value to our services. The new capital gains feature lays the groundwork for further tax optimisation tools around loss harvesting in the future,” added Rivera.

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Luis Rivera

Co-Founder and CEO


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