Discover Custom Direct Indexing | Tax-Loss Harvesting [long format]

Have tax-sensitive clients? Discover how custom direct indexing can help offset capital gains elsewhere in a portfolio.

Disclosure: There is no assurance that a separately managed account (SMA) will achieve its investment objective. SMAs are subject to market risk, which is the possibility that the market values of the securities in an account will decline and that the value of the securities may therefore be less than what you paid for them. Market values can change daily due to economic and other events (such as natural disasters, health crises, terrorism, conflicts, and social unrest) that affect markets, countries, companies, or governments. It is difficult to predict the timing, duration, and potential adverse effects (such as portfolio liquidity) of events. Accordingly, you can lose money investing in an SMA.

[TRANSCRIPT]
[Advisor 1] Yes, Amir. We’ve reduced your concentrated positions and broadened your market exposure, without a huge tax impact. [Client] Wow! That’s really great! Listen I gotta run. Bye for now. [Advisor 2] Did I just hear our most demanding client actually happy? [Advisor 1 Bigger smiles start with smaller tax bills. [Advisor 2] Ohhh…direct indexing. I’ve heard of this. [Advisor 1] When your clients directly own the securities in a passive portfolio instead of owning shares in an ETF you can harvest individual losses direct indexing does it for you, systematically and all year round. [Advisor 2] So you never miss an opportunity to capture a loss. [Advisor 1] And offset capital gains elsewhere in a client’s portfolio. [Advisor 2] Hmm, and take advantage of market volatility whenever it strikes. Ooo…ouch! [Advisor 1] Passive exposure, active tax management. [Advisor 2] Perfect for that tech bro I saw high fiving you the other day. [Advisor 1] Actually, he’s a nonprofit visionary working to solve world hunger. [Advisor 2] Oh. [Advisor 1] And it was more of a fist-bump explosion. Pooo! [Advisor 2] Cool. Cool. I think I’m gonna go to lunch. [VO] Think passive investing is all about ETFs? Discover custom direct indexing with Parametric.