Harness the benefits of direct indexing

Direct indexing products are separately managed accounts (SMA) that provide ownership of, and direct access to the underlying securities, typically equities, in an index-like solution. Direct indexing can closely replicate performance of a selected benchmark, while delivering additional benefits including tax alpha from systematic year-round tax-loss harvesting, tax-aware management of concentrated positions, and advanced personalization capabilities. 

Key benefits

• Year round tax management 
• Customization capabilities built around specific client preferences 
• Diversified core equity exposure with low tracking error 
• Increase technology optimization and cost efficiencies 
• Strategic portfolio transitions

Our approach to direct indexing

• Growing investor demand for increased personalization in investment products has driven the need for more customizable offerings and direct indexing SMAs offer a high degree of tailored flexibility. 
• A well-managed direct indexing portfolio can avoid unwanted capital gains because each investor’s portfolio is managed separately, accounting for individual tax considerations. 
• Direct indexing creates optionality for an investor, and we believe the ability to include multiple asset classes within a single custodian account provides a holistic portfolio management solution tailored to individual preferences while strategically minimizing tax liabilities.