Direct indexing owns the individual securities of a chosen index in a separately managed account. This structure allows advisors to apply custom screens, coordinate tax-aware trading, and manage tracking to a benchmark within policy guidelines.
Screens can reflect values, concentration limits, or restricted lists when supported by policy and platform capabilities. We coordinate with your firm and the client’s tax and legal advisors to align implementation with documented objectives.
We work within your operating model by coordinating with custodians, trading systems, and reporting tools. Lot-selection defaults, rebalancing cadence, and monitoring are mapped to policy, so decisions are traceable and auditable.
An ETF packages the index in a fund. Direct indexing holds the underlying securities in the client account, which supports policy-based screens, tax-aware trading, and reporting that references the client’s investment documents.
Position counts and tracking goals are set during onboarding based on client size, costs, and policy constraints. We right-size the number of holdings to balance customization, taxes, and implementation complexity.
We document tolerance bands and replacement rules in the policy. Portfolios are monitored against the chosen benchmark, and reviews are scheduled to confirm whether to maintain, adjust, or remove customizations.
We align procedures with your custodian and trading systems. Controls and blackout windows are documented in policy, and coordination with client tax advisors helps avoid unintended repurchases across accounts, subject to platform capabilities.
