Unlocking Tax Alpha: Smarter Transitions in Tax Management with Adhesion and WisdomTree
Published September 30, 2025
Kara Dombroski
Head of Business Management and Strategy, Portfolio Solutions
Ryan Krystopowicz, CFA
Director of Client Solutions
Key Takeaways
- The market shock on April 2, 2025, “Liberation Day,” highlighted the need for year-round tax-loss harvesting, not just year-end maneuvers, as volatility can strike at any time.
- Adhesion’s tax-aware platform enables scalable, systematic harvesting and personalized transition plans, turning tax management into an always-on advantage for advisors and their clients.
- By integrating WisdomTree’s diversified model portfolios with Adhesion’s operational infrastructure, advisors can deliver tax-efficient, customized solutions without increasing their workload.
It's hard to believe it has already been six months since "Liberation Day," April 2, 2025, when tariff headlines rattled markets and turned neat, year-end tax plans upside down. For many advisors, that week was a wake-up call to not count on a single December sprint for tax-loss harvesting. Market volatility does not wait for the holidays. It can show up in April, June or any other month, and with it come real, time-sensitive opportunities. In our recent Office Hours with Adhesion Wealth, we explored how that moment reinforced an important lesson: building tax management into the process throughout the year can unlock meaningful "tax alpha" and better outcomes for clients.
Meeting Advisors Where They Are
Adhesion gives advisors the scale and infrastructure to design, implement and manage portfolios more efficiently. With a wide menu of models and separately managed accounts (SMAs), plus outsourced trading, oversight, compliance and rebalancing, it helps free up time and resources.
At WisdomTree, we have heard consistently that advisors want more than "off-the-shelf" solutions. You want personalization without extra operational burden and tax-sensitive strategies that can be implemented seamlessly. That's why we have partnered with Adhesion to offer our CIO-managed, Shared CIO (custom) and ETF Essential model portfolios on their platform. Together, we make it simple to put the right portfolio in place while equipping you with the research, insights and client-ready content that support meaningful conversations.
Tax-Loss Harvesting: Beyond Year-End Opportunities
One of the most straightforward ways to add value is systematic harvesting. Too often it is treated as a December exercise, but markets create opportunities throughout the year, and April's tariff shock proved that point.
Adhesion makes harvesting part of the process, reviewing accounts multiple times annually and reinvesting in proxies so clients stay fully invested. The platform also supports ad hoc harvesting during volatile periods and adds important safeguards, such as wash-sale avoidance, deferral of short-term gains and protection for restricted positions. The result is a disciplined, scalable approach that helps maximize benefits while keeping risk in check.
Tax-Smart Transitions: Removing a Major Pain Point
Transitioning legacy portfolios into models can create real tax headaches. In our research, it's the number one barrier advisors cite when considering model adoption.
Adhesion addresses this with phased transition plans built around each client's tax budget. Instead of realizing all gains in one year, advisors can spread the impact over time while steadily moving portfolios toward their target allocations. The combination of smart technology and hands-on human oversight helps keep transitions efficient, personalized and client-friendly.
The WisdomTree + Adhesion Advantage
The strength of this partnership comes from bringing WisdomTree's models together with Adhesion's platform. Advisors can choose from:
- CIO-Managed Model Portfolios: Diversified, professionally managed solutions built by WisdomTree's Model Portfolio Investment Team.
- ETF Essential Model Portfolios: Available on Adhesion at discounted platform fees, making professional management more accessible.
Once implemented, advisors receive ongoing support, including commentary around rebalances, fact sheets and brochures to use with clients, and co-branding or white-labeling options. In practice, WisdomTree becomes an extension of your research and marketing team, while Adhesion manages the operational execution behind the scenes.
Closing Thought
If "Liberation Day" taught us anything, it is that markets do not schedule opportunities around our calendars. Waiting until December risks leaving both tax benefits and client goodwill on the table.
With WisdomTree and Adhesion, tax-loss harvesting and tax-aware transitions become part of an always-on process. That way, when the next "Liberation Day" moment arrives, whether sparked by tariffs, interest rates or unexpected headlines, your clients are already positioned to capture it. That is how we turn sporadic, year-end maneuvers into a year-round, disciplined engine for better outcomes.
Important Risks Related to this Article
WisdomTree and Adhesion do not provide tax or legal advice. Clients should consult their tax professionals.
This is for informational purposes only, is not a solicitation and should not be considered investment, legal or tax advice.
Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results.
References to CIO (Chief Investment Officer), “CIO-Managed” and “Shared CIO” are meant as general references to WisdomTree Model Portfolio subscriptions, consultation regarding WisdomTree Model Portfolios and WisdomTree Model Portfolios that may be customized to firm-specific objectives or unique firm-specific investment needs (“custom model portfolios”), and WisdomTree is not acting in an investment advisory, fiduciary or quasi-fiduciary capacity in connection therewith. Such material, and any assistance provided as described herein, including portfolio construction, WisdomTree Model Portfolios, custom model portfolios, asset allocation stress testing, assessments, discussions, output or other assistance (whether by WisdomTree personnel or digital tools) are (i) for information only and are not intended to provide, and should not be relied on for, tax, legal, accounting, investment or financial planning advice, (ii) not personalized investment advice or an investment recommendation from WisdomTree and (iii) intended for use only by a financial professional, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. Such financial professionals are responsible for making their own independent judgment as to how to use such information.
For financial advisors: WisdomTree Model Portfolio information is designed to be used by financial advisors solely as an educational resource, along with other potential resources advisors may consider, in providing services to their end clients. WisdomTree’s Model Portfolios and related content are for information only and are not intended to provide, and should not be relied on for, tax, legal, accounting, investment or financial planning advice by WisdomTree, nor should any WisdomTree Model Portfolio information be considered or relied upon as investment advice or as a recommendation from WisdomTree, including regarding the use or suitability of any WisdomTree Model Portfolio, any particular security or any particular strategy.
For retail investors: WisdomTree’s Model Portfolios are not intended to constitute investment advice or investment recommendations from WisdomTree. Your investment advisor may or may not implement WisdomTree’s Model Portfolios in your account. The performance of your account may differ from the performance shown for a variety of reasons, including but not limited to: your investment advisor, and not WisdomTree, is responsible for implementing trades in the accounts; differences in market conditions; client-imposed investment restrictions; the timing of client investments and withdrawals; fees payable; and/or other factors. WisdomTree is not responsible for determining the suitability or appropriateness of a strategy based on WisdomTree’s Model Portfolios. WisdomTree does not have investment discretion and does not place trade orders for your account. This material has been created by WisdomTree, and the information included herein has not been verified by your investment advisor and may differ from information provided by your investment advisor. WisdomTree does not undertake to provide impartial investment advice or give advice in a fiduciary capacity. Further, WisdomTree receives revenue in the form of advisory fees for our ETFs.
Adhesion receives a fee from managers for maintaining the referenced models. For more complete information about the various investment solutions available, including the investment objectives, risks and fees, please refer to the Disclosure Brochure. Please read it carefully before investing. For a copy, please contact Adhesion.
Wisdom Tree and Adhesion are separate and unaffiliated companies. Adhesion, Inc., is an investment advisor registered with the U.S. Securities and Exchange Commission.
About the contributors
Ryan Krystopowicz, CFA
Director of Client Solutions
Ryan Krystopowicz is Director of Client Solutions at WisdomTree, where he helps drive the commercialization of model portfolio solutions and supports advisor growth strategies. He plays a central role in WisdomTree’s Model Portfolio Research Study, advancing insights on model adoption, advisor behavior and prospecting opportunities. His passion for third-party model portfolios and investment outsourcing was cultivated during his tenure at a Registered Investment Advisor, where he held roles across research and operations. Ryan also brings WisdomTree’s research on advisor online presence to life through high-impact programming that turns key findings into practical guidance for improving digital credibility and prospect engagement. He is a CFA charterholder and a graduate of Loyola University of Maryland.