Strategy
Direct Indexing
Direct indexing can offer more personalization than a traditional pooled index approach, especially when tax management, exclusions, or tailored holdings matter. But it is most useful when it solves a real client problem rather than simply sounding more sophisticated.
Potential advantages
- Greater control over tax-loss harvesting opportunities
- Ability to reflect concentrated positions or exclusion preferences
- More flexibility in coordinating taxable portfolios with the broader plan
Where it fits best
Direct indexing may be most relevant for taxable portfolios where personalization and tax coordination can create meaningful value over time.
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