Direct Indexing
Index Strategies to Help Address Volatility
Direct Indexing gives clients a customized, passive investment strategy that can be enhanced with year-round tax-loss harvesting. Adhesion Wealth’s Personal Indexes program leverages scalable UMA technology to deliver highly personalized direct indexing experiences with unique tax benefits compared to ETFs or mutual funds.
Experienced Direct Indexing on Your Side
Create Personalized Portfolios
Tailor direct indexing solutions to client values, investment styles, and factor tilts.
Generate Potential Tax Savings
Capture more opportunities for loss harvesting than with traditional index funds or ETFs.
Low Cost, Easy to Manage
Offer low fees and no hard minimums, giving clients flexibility to invest and grow over time.
Manage Legacy Holdings
Incorporate appreciated positions to help control liquidations and taxable events.
Reduce Trading and Turnover
By housing multiple managers within a single UMA and leveraging Adhesion’s dynamic overlay, securities can be sold and seamlessly integrated into a direct index core. This approach reduces trading activity, commissions, and tax impact.
Adhesion’s Direct Indexing Advantage
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.
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:
Reduce trading and portfolio turnover
Minimize transaction costs and tax impact
Simplify oversight with UMA-based management
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