Direct Indexing is a valuable tool for advisors looking to emulate returns of indices that are not directly investable. Our track record with the Adhesion Investable Index Series shows how you can take advantage of these index strategies to provide clients with the precise, consistent performance and diversification they demand.
With Adhesion Wealth acting as overlay manager, you can leverage our Investable Index Series to fully replicate major market indexes and provide your clients with real-time risk mitigating tools that seek to achieve minimum deviation from the underlying index.
By seeking to replicate exposure to the economic risks and payoffs of a benchmark index, this can be a more efficient investable substitute to generate similar return profiles.
When combined with Adhesion Wealth’s tax management capabilities, our Direct Indexes give your clients the ability to tax-loss harvest individual positions that they normally would not be able to with mutual funds or ETFs.
Our integrated platform empowers you to combine Direct Indexes with other customized services related to account opening, proposal generation, rebalancing, and tax-loss harvesting—all through a single interface.
Many registered investment advisors are not proactively offering direct indexing to clients, but it could be a potential new source of revenue and may be an incentive when trying to attract advisor recruits.
Direct indexing gives clients broad exposure to an asset class, such as large-capitalized equities. But rather than buy a mutual fund or exchange-traded fund, investors own the individual stocks that comprise an index. The customization comes in when advisors tweak which index components they buy — or don’t buy — and in what proportions.
Adhesion ESG Leaders Direct Index identifies companies in the top 35% of their respective sub-industry in managing the unique ESG opportunities and threats that face every sector of the economy.
Adhesion ESG Leaders Direct Index + Low Carbon builds on the ESG Leaders approach by significantly reducing exposure to carbon intensity and company activities related to fossil fuels.
With the ongoing trend of fee compression in the industry today, Direct Indexing is an effective way for advisors to help reduce overall product costs for clients in a meaningful fashion. Advisors can also utilize the Adhesion Wealth Investable Index Series to serve several other portfolio construction objectives, including: