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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 can 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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Adhesion Investable Index Series Fact Sheet 1172x704

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.

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ESG Leaders Direct Indexes

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.

ESG Leaders Direct Index Fund Flyer

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.

Low Carbon Direct Index Fund Flyer

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