Covestor Ltd is an investment adviser registered with the Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training. Additional information about our firm can be found in the Informational Brochure, our other documents and disclosures on the Forms and Agreements page of our website, and on the SEC’s website at: Adviser Information
Covestor’s advisory services are only provided to investors who become Covestor clients pursuant to a written Investment Management Agreement (available on the Forms and Agreements page), which both potential and existing clients are urged to read carefully and consider in determining whether such an agreement is suitable for their individual facts and circumstances.
Covestor allows clients to choose suitable investments based on a risk scoring methodology. Covestor makes the same trades in portfolios and client accounts simultaneously and automatically. Clients may invest in Covestor portfolios directly or through their existing wealth manager or investment adviser. Covestor is a part of the Interactive Brokers Group, and all brokerage transactions in Covestor client accounts are made through Interactive Brokers LLC, a Covestor affiliate.
Covestor does not provide personalized financial planning to clients, such as estate, tax or retirement planning. Nothing on this site should be construed as a solicitation or offer, or recommendation, to buy or sell any security.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND ANY EXPECTED RETURNS OR HYPOTHETICAL RESULTS MAY NOT REFLECT ACTUAL FUTURE PERFORMANCE. FURTHERMORE, PAST RETURNS MAY REFLECT THE PERFORMANCE OF ASSETS FOR A FINITE TIME, OR DURING A PERIOD OF EXTREME MARKET ACTIVITY. ALL INVESTMENTS INVOLVE RISK AND MAY LOSE MONEY.
There can be no assurance that an investment in one or more Covestor portfolio or any actual performance shown on the Covestor website will lead to the same results in the future or perform in any predictable manner. It should not be assumed that investors will experience returns in the future, if any, comparable to those shown or that all of Covestor’s clients experienced such returns.
While Covestor does provide investment advice to its clients, the information on the Covestor website and this web page is provided as general and impersonalized investment information and is not a recommendation or solicitation to buy or sell any security. Covestor does not guarantee or certify the quality, accuracy, completeness, or timeliness of any content contained on the Covestor website. Please obtain additional appropriate professional advice as needed in making any investment decisions.
System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, among others.
Portfolios available for investment on the Covestor platform may not be suitable for all investors. Investors may lose all or part of their investments in any Covestor portfolios. Past performance is no guarantee of future results. Covestor uses its best judgment and good faith efforts in rendering services to clients, but Covestor cannot warrant or guarantee any particular level of account performance, or that any account will be profitable over time. Not every investment decision or recommendation made by Covestor will be profitable. Covestor clients assume all market risk involved in the investment of account assets under the Investment Management Agreement and understand that investment decisions made by Covestor in their accounts are subject to various market, currency, economic, political and business risks. Covestor clients should keep Covestor informed of any changes in their financial situation or investment objectives.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Managers. Covestor makes no representation or warranty as to its accuracy, completeness or relevance. This information does not represent the opinions of Covestor.
Past performance is no guarantee of future results.
Periodic and since inception performance returns for managers and portfolios are calculated daily and presented net of simulated advisory fees and actual brokerage commissions. For client accounts, periodic and since inception performance returns are updated continuously throughout the day, with up to a 15-minute delay on pricing. Monthly vs. S&P 500 return and the corresponding chart is calculated to the most recent month-end date. Performance of client accounts is calculated by Covestor daily on a time-weighted basis including cash, dividends paid, earnings distributions, and reflects the deduction of Covestor advisory fees, brokerage and other commissions and expenses actually paid by clients.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Performance of the Portfolio Manager’s account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of brokerage commissions. Manager returns include trades and positions that fail Covestor’s trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retroactively to present the portfolio return net-of-fees.
Historical Portfolio Manager returns with inception dates prior to launch on Covestor include trading history and positions data provided by the manager. Covestor has reviewed this data and confirmed it is consistent with current portfolio strategy.
Benchmark returns displayed on the individual portfolio profile pages have been calculated by Covestor using daily benchmark prices and do not include dividend income.
Comparisons to indices are provided for illustrative purposes only. An index is a broadly diversified, unmanaged group of securities, which may include only large capitalization companies or companies of a certain size. Broadly based indices may be shown only as an indication of the general performance of the financial markets during the periods indicated. The S&P 500 Index is intended for comparison to general equity market behavior only. This benchmark may not be suitable for comparison to individual portfolios with specific objectives, such as industry or security types.
Because of the differences between portfolio and client investments and any indices shown, Covestor cautions investors that no index is directly comparable to the performance shown since each index has its own unique results and volatility, and such indices, if shown, should not be relied upon as an accurate comparison.
For certain portfolios Covestor uses an index as a benchmark, while for others it uses an investable exchange-traded fund (“ETF”) as a benchmark.
Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. For certain portfolios we use an investable ETF as a benchmark - in these cases returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
Benchmarks relevant to each portfolio are assigned by Covestor based on overall strategy, portfolio trade history, and/or other criteria.
In addition to Portfolio Manager strategies, Covestor allows its clients to invest in certain portfolios (referred to as the Smart Beta Portfolios) that Covestor itself manages. Because Covestor staff have constructed and manage the Smart Beta portfolios without any involvement on the part of third-party Portfolio Managers, Covestor retains the entire 0.08% fee charged to its clients for investments in the Smart Beta portfolios and does not pay any portion of this fee to any Portfolio Managers.
These portfolios are proprietary investment portfolios designed and managed by Covestor itself, and not by third-party Portfolio Managers. To manage these portfolios, Covestor trades some of its own capital in separate proprietary brokerage accounts associated with each Smart Beta portfolio and then mirrors this trading in the accounts of clients investing in that specific portfolio. Subsequently, any quarterly rebalancing trades placed by Covestor in the Smart Beta portfolios are proportionally replicated in client accounts investing in one or more of these portfolios via Covestor’s co-trading technology.
Please note that, due to the large number of positions included in each Smart Beta portfolio, the initial investment and the quarterly rebalancing will result in numerous transactions in an investing client’s account. This portfolio turnover will lead to transaction costs, such as commissions payable to Interactive Brokers LLC (Covestor’s affiliated broker-dealer) whenever Covestor buys and sells securities in the Smart Beta portfolios, which is a conflict of interest.
The Smart Beta portfolios involve a large number of stocks and there will be trades in many of these stocks whenever Covestor rebalances the portfolios or you add to your investment. You will need to report some (or all) of these trades on your tax forms. Covestor cannot provide tax advice or prepare tax documents for you. Please consult an accountant or tax attorney to determine the tax-related obligations associated with investing in these portfolios. Please note that Interactive Brokers LLC provides certain tools to assist you with your tax filings, but these tools may only be able to support a limited number of trades.
Covestor only allows you to invest in a Smart Beta portfolio if it is suitable for you in light of your financial situation and investment objectives that you have described to Covestor in response to our risk questionnaire.
Each Smart Beta portfolio seeks, as its investment objective, to achieve total returns that exceed the total returns of certain market capitalization-weighted indices, such as the S&P 500, by relying on systematic rules-based investment strategies that do not use conventional market capitalization weights. Covestor’s Smart Beta portfolios are designed to provide systematic exposure to a fundamental factor or a combination of factors, such as value, growth, quality, and dividend yield. Using a proprietary automated, computer algorithm, Covestor selects the equity securities that comprise the Smart Beta portfolios, and, initially and upon quarterly rebalancing, determines the allocations and sector weights of the securities in the Smart Beta portfolios. Covestor’s Investment Management team oversees the trading in the Smart Beta portfolios in order to verify the accuracy and reliability of the stock fundamental data used in the model. Covestor’s main sources of information for the transactions in the Smart Beta Portfolios include data about US stocks provided by third-party data vendors.
These portfolios mainly invest in stocks and may not be suitable for all investors. You may lose all or part of investments in these portfolios. Past performance is no guarantee of future results. You may find additional information on the risks, conflicts of interest, applicable fees and brokerage commissions, brokerage arrangements, fractional shares, and limitations on investments and divestments associated with these portfolios (along with Covestor’s full disclosures) on the Forms and Agreements page, which clients must acknowledge before investing.
Covestor manages client accounts by replicating portfolio trades in the accounts of clients investing in each portfolio. Clients choose the specific portfolios and may block specific investments from being made in their accounts, but Covestor is responsible for all trading in client accounts. While Covestor aims to replicate portfolio trading activity as closely as possible in client accounts, it cannot guarantee it will succeed in doing so or that it will achieve the same performance as the underlying portfolio. This is due to a number of factors, including but not limited to:
To ensure that Covestor is able to better track the trading activity in the portfolios, clients authorize Covestor to make adjustment trades in their accounts. These adjustments may require small buy or sell trades in client accounts for which clients will incur additional commissions.
Covestor provides back-tested hypothetical results for the Smart Beta portfolios for informational and educational purposes only. These hypothetical back-tested results are NOT actual results based on actual trading of real client funds, are not based on nor bear any relation to the actual performance of any Covestor client account, and were achieved by means of the retroactive application of a model designed with the benefit of hindsight. Covestor does not make any representation that any client will or is likely to achieve results similar to the hypothetical results presented.
Actual results in a Covestor client account employing the same strategy could differ significantly from these back-tested hypothetical results depending on factors such as: broad stock market performance, factor returns, available liquidity, interest rates, economic growth, transaction costs, and other market factors. One of the limitations of hypothetical back-tested results is that they are generally prepared with the benefit of hindsight. Additionally, unlike actual trading, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading strategy in spite of trading losses are material factors which can adversely affect actual trading results. There are numerous other factors related to the markets in general or the implementation of a particular trading strategy which cannot be fully accounted for in the preparation of hypothetical performance results, all of which can adversely affect actual trading results.
Please note an important distinction between the methods Covestor used to calculate hypothetical and actual returns: while hypothetical back-tested returns are calculated on a month-end basis with this monthly series of hypothetical returns then used as basis for calculating the various risk and return metrics presented, actual returns are calculated daily, as for all the other portfolios on the Covestor platform. Consequently, the month-end calculation of hypothetical back-tested results may limit their comparability to the daily calculation of actual returns.
Hypothetical back-tested results and related risk metrics are calculated and presented separately from performance and risk metrics based on trading of actual funds.
All hypothetical back-tested results presented reflect the deduction of advisory fees, brokerage or other commissions and other expenses that a Covestor client would have to pay if he invested in a portfolio after the launch date.
While Covestor believes that the data used to calculate the hypothetical results was obtained from reliable sources, in generating the hypothetical charts and results, Covestor used historical market data which has not been audited and validated, and may contain errors in pricing or other conditions. Covestor exclusively relied on data compiled by a third-party (i.e., the Thomson Reuters Worldscope database) for market data and information as the basis for these hypothetical return calculations, and cannot be responsible for the accuracy of this data.
You may review more detailed disclosures on the limitations of hypothetical returns and the way Covestor calculated these in the Hypothetical Back-Tested Results Disclosure on the Forms and Agreements page, which clients must review before being able to view hypothetical results.
Fees may vary for each client based on the portfolios selected for investment. Advisory fees are calculated based upon the amount of assets being managed by Covestor (as detailed in Covestor’s Informational Brochure, Form ADV Part 2). Covestor charges clients an annual management fee ranging between 0.08% and 1.5% of the gross market value of client assets invested. An additional performance fee ranging between 2-12% of positive performance may be applied to qualified clients investing in certain portfolios. Covestor uses an online Qualified Client affirmation process to assess whether a specific client is a qualified client under the applicable SEC rule. The fees applicable to investments in each portfolio are set forth on each portfolio page at covestor.com. Covestor does not charge clients fees on assets not invested in a portfolio.
Covestor’s fees only cover its investment advisory services and do not include brokerage commissions, custodial fees, transaction fees, exchange fees or other related costs and expenses incurred for the investment of client assets through Covestor. All fees paid to Covestor for its investment advisory services are separate, distinct and in addition to any fees and expenses charged by mutual funds or in conjunction with internal expenses associated with exchange-traded funds. Clients will be solely responsible, directly or indirectly, for these additional expenses. Covestor does not receive any portion of these commissions, fees, or costs.
The investment minimum is the minimum dollar amount required to invest in a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. Investment minimums on the Covestor platform start at $5,000 for Covestor-managed Smart Beta portfolios and $10,000 for portfolios managed by third-party Portfolio Managers. Investment minimums should not be considered specific investment advice for your investment situation. Despite the lower minimum investment ($5,000) required for investments in the Covestor-managed Smart Beta portfolios, clients must still open a $10,000 brokerage account with Interactive Brokers LLC before being able to invest on the Covestor platform.
Pursuant to the Investment Management Agreement between Covestor and its clients, all brokerage transactions occur through Interactive Brokers LLC, an affiliate of Covestor. Covestor does not offer services through any other broker-dealer. The use of an affiliate for brokerage services represents a conflict of interest. Covestor clients acknowledge this conflict of interest and authorize Covestor to execute transactions through Interactive Brokers LLC when they open a Covestor account. Clients should consider the commissions and other expenses, execution, clearance, and settlement capabilities of Interactive Brokers LLC as a factor in their decision to invest in a Covestor Portfolio. Covestor believes it can meet its best execution obligation by trading its clients’ trades through Interactive Brokers LLC. While there can be no assurance that it will in fact achieve best execution, Covestor does periodically monitor the execution quality of transactions to ensure that clients receive the best overall trade execution pursuant to regulatory requirements.
Interactive Brokers LLC charges Covestor clients commissions based on IB’s tiered commissions structure for stock trades and IB’s standard options commissions structure for options trades.
Generally, for transactions in stock portfolios managed by third-party managers, Interactive Brokers LLC charges Covestor clients commissions of $0.0035 per share, with exchange, regulatory and clearing fees charged separately. (This is subject to a minimum per order commission of $0.35 and a maximum of 0.5% of the value of the trade.) For transactions in options portfolios managed by third-party managers, Interactive Brokers LLC charges Covestor clients commissions as specified in the standard options pricing structure for North America set forth on IB’s website.
For transactions in Covestor Smart Beta Portfolios, which are managed by Covestor, Interactive Brokers LLC offers Covestor clients a modified tiered commission structure. Under this structure, Interactive Brokers LLC charges $0.0035 in commissions per aggregated shares based on the whole “basket” of securities in a client’s Smart Beta investment rather than on each security. Generally, for Smart Beta Portfolio trades, Interactive Brokers LLC charges a minimum commission equal to the lower of $5 or 0.05% of trade value per client account, if more than the standard tiered commissions charge of $0.0035 per aggregated shares in the client basket. Interactive Brokers LLC caps commissions on Smart Beta portfolios at 0.5% of the value of the basket trade.
Additionally, Interactive Brokers LLC requires certain types of brokerage accounts to generate a minimum level of commissions each month. Under certain circumstances, Interactive Brokers LLC will charge Covestor clients a minimum monthly commission charge of up to $10. Specifically, whenever the overall monthly commissions paid by all Covestor client accounts do not amount to at least $10 in commissions per account per month, Interactive Brokers LLC will collectively charge Covestor clients the difference between the actual commissions charged and the overall $10 minimum due for all Covestor clients, determined on a pro rata basis (based on the amount by which each Covestor client account is below the $10 minimum.)
You may find information on the commissions applicable to your Interactive Brokers LLC brokerage account, including your Covestor investments, on the Interactive Brokers website here: Stocks, ETFs (ETPs) and Warrants - Tiered Pricing Structure and Options - North America Pricing Structure
Covestor offers a discretionary investment advisory program and not a self-directed brokerage service. Covestor clients do not enter individual buy and sell orders for specific securities to be executed at particular times. Covestor places buy and sell orders for specific securities consistent with the Portfolio Manager or Covestor-managed Smart Beta Portfolio strategy selected by clients, in accordance with the discretionary authority granted Covestor by clients. If a client wants to control the specific time and securities to be bought and sold in his account, he should not use Covestor or should execute separate self-directed trades in a portion of their Interactive Brokers LLC brokerage account or another brokerage account.
Nonetheless, Covestor clients may restrict the stocks traded in their account at any time and Covestor will honor these restrictions when mirroring the trading in portfolio clients choose to invest in. Clients should understand that imposing restrictions on future investments and selling any existing holdings in a portfolio may negatively affect the performance of a client account and lead to that account performing differently or worse than the portfolio it follows.
30-day trial accounts simulate the investment of funds to Covestor portfolios through the allocation of virtual dollars. Trial accounts are for demonstration purposes only. The activity in a trial account does not represent the actual results a Covestor client could achieve in a live Covestor account. Actual results in a live Covestor client account will vary.
Trial account valuations are calculated based on the allocated investment amounts and the daily returns for the manager account associated with each designated portfolio. Trial accounts do not track individual holdings, transactions, or daily individual security pricing. These estimated account valuations are for demonstration purposes only. Actual results in a client account will thus be different than represented in the trial account. Additional information on the differences between a trial account and a live Covestor client account can be found here.
Covestor management fees are not charged on trial accounts and are shown as a deduction from the account balance for illustrative purposes only. Management fees range between 0.08%-1.5% per year for investment in a portfolio. Before investing in a portfolio, you will be advised of the specific management fee (which is displayed on all portfolio profile pages). No management fees are charged for any cash in your account that is not invested in a Covestor portfolio.
Trial account valuations are calculated using the returns of the manager account associated with the specific portfolio, and reflect the deduction of actual brokerage fees incurred and a simulated Covestor advisory fee that would be charged to an actual Covestor client account. The impact of these expenses may be understated or overstated.
Gain/loss: Ending valuation - (Beginning valuation + Cashflows)
Simple return: Gain or loss / (Beginning valuation + Cashflows)
Certain manager portfolios on the Covestor platform may include options trading. Options trading involves a high degree of risk, is highly speculative, and is not suitable for all investors.
Covestor clients should review this disclosure, the Enable Options Strategies disclosure on the Forms and Agreements page, and the disclosure of the risks of trading options included in Covestor’s Informational Brochure before deciding to invest in portfolios trading options. Covestor clients should review this important disclosure before deciding to invest in portfolios trading options.
Please note that your brokerage account must be enabled for options trading to invest in options through your Covestor account.
Covestor clients contemplating options trading should carefully review and understand the Options Clearing Corporation’s ("OCC") disclosure document "Characteristics and Risks of Standardized Options" and Interactive Brokers LLC’s "OCC Risk Disclosure Statement and Acknowledgements."
Trading options may result in the total loss of premiums and transaction costs. Option contracts are traded for a specified period of time and have no value after expiration. Trading halts in the underlying security, or other trading conditions (e.g., volatility, liquidity, system failures) may cause the trading market for one or all options to be unavailable, in which case, the holder or writer of an option would not be able to engage in a closing transaction, and would remain obligated until expiration or assignment. Even if the market is available, there may be situations when options prices will not maintain their customary or anticipated relationships to the prices of the underlying and related interests.
Uncovered option trading is the most speculative and riskiest form of trading and exposes investors to potentially significant losses. Uncovered options writing is suitable only for knowledgeable investors who fully understand the risks, have the financial capacity and willingness to incur potentially substantial losses, and have sufficient liquid assets to meet applicable margin requirements.
Covestor will attempt to mirror the options trading in the portfolio(s) in which you invest but may not be able to perfectly replicate the same proportion of options in your account that the Portfolio Manager holds in his account. Therefore, the performance of your account may be significantly different or worse than that of the Portfolio Manager’s account (referred herein as “performance drift”) for several reasons, including but not limited to the following:
In order to minimize performance drift between your account and the account of the Portfolio Manager, Covestor may recommend that you invest a multiple of the required investment minimum and minimize frequency of redemptions from any options portfolios you invest in.
If you are uncomfortable with the level of risk associated with options trading, you should not invest in portfolios that trade options and should contact Covestor at 1.866.825.3005 to let us know.
Certain portfolios on the Covestor platform may sell securities short. Short selling refers to the sale of a security that the seller does not own or a sale consummated by the delivery of a stock borrowed by or for the account of the seller. A short selling strategy hinges on the short seller’s ability to purchase later at a lower price the security he sells without initially owning, and attempts to profit from falling security prices of potentially overvalued stocks.
Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Unlike with stock purchases (where the risk of loss is limited to the amount paid for the stock and the gains are potentially limitless), short selling theoretically carries virtually unlimited risk of loss because there is no limit on the price that a security could reach before the short position is closed. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk.
If you are uncomfortable with the level of risk associated with selling securities short, you should not invest in short sell securities and should contact Covestor at 1.866.825.3005 to let us know.
Certain portfolios on the Covestor platform may trade on margin. Margin refers to the use of borrowed funds to fund the investments in an account. Trading on margin involves a high degree of risk, is highly speculative, and is not suitable for all investors. Covestor clients should review this important disclosure before deciding to invest in portfolios trading on margin.
Please note that your brokerage account must be enabled for margin trading to invest borrowed funds through your Covestor account.
Trading on margin makes the value of an investor’s account increase or decrease at a greater rate than if no funds were borrowed. The higher the amount of margin (or leverage) in a portfolio, the larger both the risk of loss and possibility of profit. In addition, you must pay the broker interest on your margin loan and may need to pay other fees and expenses as well, such as hard-to-borrow fees and buy-in costs. These additional costs may even lead to a lower rate of return than if funds were not borrowed.
Generally, investment strategies involving margin trading are more speculative and carry a greater potential for loss than investments not using margin.
If you are uncomfortable with the level of risk associated with trading on margin in your account, you should not invest in portfolios using margin and should contact Covestor at 1.866.825.3005 to let us know.
Portfolio Managers are compensated for licensing their investment data to Covestor. Covestor compensates Portfolio Managers with a portion of the management fee it charges clients (equivalent to a percentage of the gross market value of client assets managed in that portfolio) investing in their portfolio and, if applicable, a portion of the performance fee it charges any qualified clients. Additional information can be found here.
The investment advice Covestor provides to clients is highly dependent on the accuracy of the information provided to Covestor by its clients. If a client provides inaccurate information or fails to update outdated information, the quality and relevance of Covestor’s investment advice could be materially affected. Covestor’s investment advice is limited in scope to the risk questionnaire it asks clients through its website and the answers and information clients provide to Covestor. There may be additional information or financial circumstances not asked about in Covestor’s risk questionnaire that could inform Covestor’s investment advice. Clients should contact another financial advisor to discuss any such additional information or other financial circumstances that clients may think could be relevant to Covestor’s investment advice.
Covestor’s investment advice relies on data and information from third party sources. While Covestor believes that the data it uses in its investment management processes is obtained from reliable sources, it did not audit or validate this data, which may contain errors. Covestor exclusively relied on data compiled by a third-party (i.e., the Thomson Reuters Worldscope database) for market data and information as the basis for the hypothetical return calculations for the Smart Beta Portfolios, and cannot be responsible for the accuracy of this data.
Covestor’s investment activities depend on various computer and telecommunications technologies, some provided by or dependent upon third parties, such as data feed, data center, telecommunications or utility providers. Covestor’s services to its clients could be severely compromised by system and/or telecommunications failures, power loss, unauthorized system access or use, computer viruses, fire or water damage, human errors in using certain systems, or other events or circumstances. Events that may interrupt computer or telecommunications systems could have a material adverse effect on Covestor clients, including by preventing Covestor from trading, liquidating or monitoring its clients’ investments. Covestor maintains back-up electronic books and records at a third-party disaster recovery site. In case of interruption of its computer and/or telecommunications systems, Covestor will strive to resume service to its clients promptly, barring any circumstances outside of its control.
Covestor does not provide tax advice and does not represent in any manner that investments in a Covestor portfolio will result in any particular tax consequences.
Clients should confer with their personal tax advisors regarding the tax consequences of investing in a Covestor portfolio, based on their particular circumstances. Clients and their personal tax advisors are responsible for how the transactions conducted in an account are reported to the IRS or any other taxing authority on the client’s personal tax returns. Covestor assumes no responsibility for the tax consequences to any client of any transaction.
The Smart Beta portfolios involve a large number of stocks and there will be trades in many of these stocks whenever Covestor rebalances the portfolios or clients add to their investment. Clients may need to report some (or all) of these trades on their tax forms. Covestor cannot provide tax advice or prepare tax documents for clients. Clients should consult their accountant or tax attorney to determine the tax-related obligations associated with investments in these portfolios. Please note that Interactive Brokers LLC provides certain tools to assist its brokerage clients, including Covestor clients, with their tax filings, but these tools may only be able to support a limited number of trades.
This is an offer of investment services to US persons only. The content of this website is NOT intended to be a solicitation or advertisement in any jurisdiction other than the United States.This website has been published in the United States exclusively in English and is intended to provide information in compliance with applicable United States laws and regulations.
The content of the Covestor Smarter Investing blog includes commentaries written by third-party Portfolio Managers, freelance writers and Covestor employees and does not necessarily represent the opinions of Covestor or any of its officers, directors, employees or staff. The content, whether or not provided by Covestor, does not constitute investment advice and is not an offer to buy or sell any security.
For additional information or questions about this blog, please contact email@example.com.
Any external links provided are not the property or responsibility of Covestor, and, although Covestor has a reasonable belief that the information is factually accurate and up to date, it cannot guarantee the accuracy of the information at these links.
Blog discussions may contain references to portfolio performance. The performance figures stated are net of advisory fees, and include reinvestment of dividends and other earnings. Any investments discussed in the blog that are not identified as being held in portfolios are for illustrative purposes only. There is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments are presented for discussion purposes only and are not a reliable indicator of the performance or investment profile of any composite or client account. Further, the reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investments decisions made by Covestor managers in the future will be profitable.
Performance is no guarantee of future results. All investments in financial markets involve risk, including the risk of loss.
Performance for the Portfolio Manager’s account has been calculated by Covestor on a daily time-weighted basis, including cash, reinvested dividends and earnings, and reflects the deduction of simulated Covestor advisory fees and broker commissions to present returns net-of-fees.
Blog discussions may contain references or comparisons to indexes or benchmarks. These index or benchmark comparisons are provided for informational purposes only and should not be used as a basis for making investment decisions. There are significant differences between client accounts and the indexes or benchmarks referenced, including, but not limited to, risk profile, liquidity, volatility and asset composition. If you would like more specific information about a particular index or benchmark, please visit the respective index’s website.
Benchmark returns displayed on the individual portfolio profile pages have been calculated by Covestor using daily benchmark prices and do not include dividend income.
For certain portfolios Covestor uses an index as a benchmark, while for others it uses an investable exchange-traded fund (“ETF”) as a benchmark.
Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
Benchmarks relevant to each portfolio are assigned by Covestor based on overall strategy, portfolio trade history, and/or other criteria. The S&P 500 Index is intended for comparison to general equity market behavior only. This benchmark may not be suitable for comparison to individual portfolios with specific objectives, such as industry or security types.
Month to Date returns & Since Inception returns are revised daily. All other returns (month, 3 month, year to date, et al) are calculated as of the most recent month end date.
Financial Market Data powered by Trading View. All rights reserved.
For more information regarding Covestor performance results, see the individual portfolio profile pages on Covestor as well as our Legal Disclosures page.
Covestor blog commentaries may contain forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Covestor managers and other Covestor blog contributors believe that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information, and opinions are inherently uncertain, and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information, and opinions.
Copyright © 2017 Covestor Ltd. All rights reserved.