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Investment Consulting

Direct Indexes

Index Strategies to Help Address Volatility

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 may be able to take advantage of these index strategies to provide clients with the precise, consistent performance and diversification they demand.

Experienced Direct Indexing on Your Side

Real-Time Risk Monitoring

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.

Efficient, Index-like Returns

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.

Tax Management Focus

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.

A Holistic, Customizable Process

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.

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Direct Indexing – Not Only a Customized Solution, but a Potential Revenue Stream and Hiring Incentive for RIAs

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.

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The Power of Direct Indexing Within a UMA

Direct indexing has become a bit of a buzzword in the financial press. It sounds interesting, but do you really understand the power and potential applications of Direct Indexing for your clients? Why could Direct Indexing be a viable option for your clients?

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A History of Keeping Pace with Major Market Index Performance

Our Adhesion Investable Index Series has demonstrated a track record seeking to replicate the results of the Russell 1000, Russell 3000 and S&P 500. By distilling holdings using a factor-based model, we’ve been able to maintain a high correlation and high fidelity (low tracking error) to the underlying index.

Download Model Fact Sheet

Investing with Purpose

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:

  • As a core module inside of a larger core/satellite portfolio
  • To adhere to a client’s lifestyle or religious preferences that could not be achieved through an ETF or mutual fund
  • As a tax-loss harvesting module within a portfolio that also demonstrates index-like tracking characteristics

See How Direct Indexes Can Fit In Your Portfolios

For financial professional use only.

Important Information

This is for informational purposes only, is not a solicitation, and should not be considered investment, legal or tax advice. The information has been drawn from sources believed to be reliable, but its accuracy is not guaranteed and is subject to change.

Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. UMAs are not suitable for all investors and should be evaluated for suitability by financial professionals prior to investing.

For more complete information about the various investment solutions available, including the investment objectives, risks, and fees, please refer to the Disclosure Brochure. Please read it carefully before investing. For a copy, please contact Adhesion Wealth Advisor Solutions (“Adhesion Wealth”).

Adhesion Wealth is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Adhesion Wealth and third-party providers are separate and unaffiliated companies. Each party is responsible for their own content and services.

Adhesion Wealth is an affiliate of AssetMark, Inc., an investment adviser registered with the SEC.

©2024 Adhesion Wealth Advisor Solutions. All rights reserved. © 2024 Adhesion Wealth Advisor Solutions, Inc. All rights reserved.

C24-20942 | 02/2024 | EXP 2-28-2026