The ETF Advantage of Direct Indexing
The video highlights two approaches of direct indexing designed to help reduce tax liability and boost after-tax returns.
Direct indexing separately managed accounts (SMAs) seek index-like returns with tax benefits achieved through tax-loss harvesting. While the traditional approach involves portfolios of individual stocks, an ETF-based approach offers distinct advantages that may improve after-tax results, including:
- Stronger after-tax return potential
- Greater tax-loss capture opportunities
- A simplified investor experience
Related Insights
Demand For Direct Indexing Rises with Asset Values
After a second consecutive year of outsized equity returns, investors eager to lock-in profits and/or rebalance portfolios may benefit from direct indexing.
Direct Indexing Seeks to Minimize Year-End Capital Gains Impact
Investment brief outlines how direct indexing can offer investors a way to mitigate year-end tax surprises and take greater control of their financial outcomes.
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