Reviews changes in tax legislation, the impact of taxes on various investment vehicles, and techniques for enhancing after-tax investment returns.
While direct indexing offers tax planning and customization benefits, investors need to be comfortable with the potential for index tracking error.
Direct indexing portfolios can be customized to maximize after-tax return, align with personal values, or pursue specific investment objectives.
Quantifying a fund’s tax costs can be an important differentiator, but is much more difficult to assess than investment management or advisory fees.
The tax-efficiency and customization options available with direct indexing may be particularly attractive to high net worth investors.
ETFs are more tax-efficient than mutual funds, but for tax-sensitive investors, direct indexing may be an even better solution.
Learn how technological advancements are making separately managed accounts more attractive to a wider audience, especially for tax planning.