A. Description of the Advisory Firm
Nytrx LLC is a Limited Liability Company organized in the State of Delaware. The firm was
formed in May 2010. The firm was registered with the SEC as an Investment Adviser in 2021.
The principal owner is Quenton Nolte.
B. Types of Advisory Services
We offer several automated investment management strategies consisting of portfolio
families of ETFs and Stocks. Our services are provided through an interactive website using
computer-based models and applications to collect your information and provide investment
advice.
To determine your financial situation and investment objectives, we will need to obtain certain
information from you through our interactive website. You will be responsible for providing
any changes to your financial situation or investment objectives by updating your responses
on our interactive website.
The client's portfolios are held in a brokerage account opened by the client at Charles Schwab
& Co., Inc. ("CS&Co").
You must appoint our firm as your investment adviser of record on specified accounts
(collectively, the “Account”). The Account consists only of separate account(s) held by CS&Co
under your name which serves as qualified custodian and broker/dealer. As qualified
custodian, CS&Co, maintains physical custody of all funds and securities of the Account, and
you retain all rights of ownership (e.g., right to withdraw securities or cash, exercise or
delegate proxy voting and receive transaction confirmations) of the Account. Please see Item
12 – Brokerage Practices for more information regarding CS&Co.
It is important that you understand that we manage investments for other clients and can give
them advice or take actions for them or for our personal accounts that is different from the
advice we provide to you, or actions taken for you. We are not obligated to buy or sell to you
any security or other investment that we can buy or sell for any other clients or for our own
accounts.
Conflicts arise in the allocation of investment opportunities among accounts that we manage.
We strive to allocate investment opportunities believed to be appropriate for your account(s)
and other accounts advised by our firm among such accounts equitably and consistent with
the best interests of all accounts involved. However, there can be no assurance that a
particular investment opportunity that comes to our attention will be allocated in any
particular manner. If we obtain material, non-public information about a security or its issuer
that we may not lawfully use or disclose, we have absolutely no obligation to disclose the
information to any client or use it for any client’s benefit.
ETF Automated Investment Strategies
We offer an automated investment program (the “Program”) through which clients are
invested in a range of investment strategies we have constructed and manage, each consisting
of a portfolio of exchange-traded funds and a cash allocation.
The client can instruct us to exclude up to three Funds from their portfolio. We use the
Institutional Intelligent Portfolios® platform (“Platform”), offered by Schwab Performance
Technologies (“SPT”), a software provider to independent investment advisors and an affiliate
of CS&Co., to operate the Program. We are independent of and not owned by, affiliated with,
or sponsored or supervised by SPT, CS&Co., or their affiliates (together, “Schwab”).
We, and not Schwab, are the client’s investment advisor and primary point of contact with
respect to the Program. We are solely responsible, and Schwab is not responsible, for
determining the appropriateness of the Program for the client, choosing a suitable investment
strategy and portfolio for the client’s investment needs and goals, and managing that portfolio
on an ongoing basis. We have contracted with SPT to provide us with the Platform, which
consists of technology and related trading and account management services for the Program.
The Platform enables us to make the Program available to clients online and includes a system
that automates certain key parts of our investment process (the “System”).
The System includes an online questionnaire that can help us determine the client’s
investment objectives and risk tolerance and select an appropriate investment strategy and
portfolio. Clients should note that, if we use the online questionnaire, we will recommend a
portfolio via the System in response to the client’s answers to the online questionnaire.
The client may then indicate an interest in a portfolio that is one level less or more
conservative or aggressive than the recommended portfolio, but we then make the final
decision and select a portfolio based on all the information we have about the client.
The System also includes an automated investment engine through which we manage the
client’s portfolio on an ongoing basis through automatic rebalancing and tax-loss harvesting
(if the client is eligible and elects).
Clients do not pay brokerage commissions or any other fees to CS&Co. as part of the Program.
Schwab does receive other revenues, including (i) the profit earned by Charles Schwab Bank,
SSB, a Schwab affiliate, on the allocation to the Schwab Intelligent Portfolios Sweep Program
described in the Schwab Intelligent Portfolios Sweep Program Disclosure Statement; (ii)
investment advisory and/or administrative service fees (or unitary fees) received by Charles
Schwab Investment Management, Inc., a Schwab affiliate, from Schwab ETFs™ Schwab Funds®
and Laudus Funds® that we select to buy and hold in the client’s brokerage account; (iii) fees
received by Schwab from mutual funds in the Schwab Mutual Fund Marketplace® (including
certain Schwab Funds and Laudus Funds) in the client’s brokerage account for services Schwab
provides; and (iv) remuneration Schwab receives from the market centers where it routes ETF
trade orders for execution.
Direct Indexing Portfolios
Direct indexing is the construction of a custom investment portfolio that mirrors the
composition of an index and refers to tracking the performance of an index by buying a sample
of individual stocks instead of an ETF or mutual fund.
Our Direct Indexing Portfolios uses the Schwab Personalized Indexing™ service. Schwab
Personalized Indexing is a separately managed account that is a portfolio of assets managed
by a professional investment team, offers direct ownership of securities with the ability to
customize up to three securities, and is optimized to help closely resemble the index is
evaluated and monitored daily. Schwab Personalized Indexing is managed by Charles Schwab
Investment Management, Inc. (CSIM) with a 25 basis point annual fee.
We use an online questionnaire to determine the client's investment index objective and
select an appropriate separately managed account portfolio that mirrors the composition of
the selected index.
Cash Allocations
The Direct Indexing portfolios do not require a minimum cash allocation. The ETF Automated
Investment Strategies program include a minimum 4% cash allocation. This cash allocation is
implemented through the Schwab Intelligent Portfolios Sweep Program, a required feature of
the Schwab Intelligent Portfolios program.
The interest rate on cash balances in the Sweep Program is set on the first business day of
each month equal to the seven-day yield (with waivers) for the Schwab Government Money
Fund Sweep Shares as determined at the end of the prior month. This interest rate and the
method used to determine it are both subject to change.
We charge clients a fee for our services as described below under Item 5 Fees and
Compensation. Our fees are not set or supervised by Schwab.
We do not limit our advice to securities, but we typically recommend or purchase Exchange
traded funds (ETFs), stocks, and fixed income securities. We can use other securities as well
to help diversify a portfolio when applicable.
C. Client Tailored Services and Client Imposed Restrictions
We offer the same suite of services to all our clients. However, specific client investment
strategies and their implementation are dependent upon each client’s current situation
(income, tax levels, and risk tolerance levels). Clients cannot impose restrictions in investing
in certain securities or types of securities in accordance with their values or beliefs.
D. Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that
includes management fees, transaction costs, fund expenses, and other administrative fees.
Nytrx does not participate in any wrap fee programs. Clients will pay any transaction fees, if
applicable, when we buy or sell an investment for their account.
E. Assets Under Management
As of January, 4, 2024, Nytrx manages approximately $2,123,255 in Client assets, all of which
are on a discretionary basis. Clients can request more current information at any time by
contacting the Advisor.