"We are delighted to offer investors the opportunity to access three thematic investment trends through efficient index-tracked solutions. The themes that underpin UPGR, CHPS and PSWD, we believe, hold immense potential for impact on the economy in both the near and long-term” said Arne Noack, Head Systematic Investment Solutions, Americas, at DWS Group. “It has long been our mission to offer investors innovative and diverse ETF solutions that not only enhance their core portfolio holdings but provide exposure to different segments of the global economy.”
All four ETFs are "fund of funds," and utilize a range of existing Avantis ETFs to build out multi-region and multi-asset class solutions. AVGV offers global equity exposure, while AVNM and AVNV offer exposure to non-U.S. developed and emerging markets. AVMA is designed to deliver a more balanced allocation, investing in both equity and fixed income ETFs.
Wondering whether adding Vanguard Personalized Indexing to your offerings could help you build your business? Listen in to hear how longtime direct indexing users Matt Shibata, managing partner of Morling Financial Advisors, and Dave Murdock, managing partner of Bordeaux Wealth Advisors, have been using the strategy to help improve outcomes for their clients.
Trading and clearing were decidedly the most popular uses of fintech amongst advisors, as only 3.8% reported not using technology for these purposes. Despite that heavy usage, there was little room for third-party fintech providers to offer their services: over three quarters of advisors reported using software provided by a home office for trading and clearing.
One reason to index directly is to implement shareholder preferences, such as environmental, social, and governance factors. However, as many index funds also incorporate such preferences while being easier to implement, and the expected payoff for indulging one’s personal inclinations is exactly zero, this motivation seems unappealing.
Per Vanguard, portfolios can gradually accumulate enough tax losses to offset the capital gains acquired through selling other securities. Advisors can sell off securities, then fund the direct indexing portfolio with the proceeds from the sale. That way, the investor could experience no overall tax cost as they diversify the concentrated position.
Direct indexing is an investing strategy that involves purchasing the components of an index directly. The approach has typically been reserved for investors with sizable portfolios, such as institutions or high-net-worth individuals, but the introduction of zero-commission trading and fractional shares makes direct indexing accessible to more people these days.
