Envestnet’s direct indexing solutions, powered by QRG Capital Management, blend deep customization, tax efficiency, and low fees to help advisors deliver truly personalized, scalable portfolios—across equities, fixed income, and factor-based strategies—in a single, unified platform.
The “lockup” narrative around direct indexing suggests tax benefits vanish after initial loss harvesting. Jerry Michael, President of Smartleaf, dismantles the myth by showing how direct indexes can deliver tax efficiency across every client milestone—from onboarding legacy positions to withdrawals, charitable giving, and rebalancing. The issue isn’t whether direct indexes work long term; it’s whether advisors understand tax management beyond loss harvesting alone.
Applying a tax management framework to smart beta or factor portfolios provides beneficial after-tax outcomes. Among the factor portfolios tested, a tax management framework generally resulted in a less desirable pre-tax portfolio but is compensated for on an after-tax basis.
Advisors can use custom SMAs to help their clients pursue a range of goals. Fidelity's guide will explore four common use cases, including diversification away from concentrated positions and even accumulating capital losses for a future taxable event.
Custom SMAs can be tailored to personal investment goals, adjusting their holdings to suit a variety of investment styles and preferences while remaining focused on tax planning and tax management.
Advisors face stiff competition in the race to meet rising investor expectations, putting a premium on scale and differentiation. The rise of direct indexing has shone a spotlight on the potential for customized separately managed accounts (custom SMAs) to help in this effort.
Investment strategy has never been a one-size-fits-all process. When it comes to investing and retirement planning, the strategic use of separately managed accounts (SMAs) is one personalization strategy that advisors are employing with their clients to meet their investing needs.