Direct Indexing
Most Rochester-area investors with significant taxable portfolios own index funds and think of themselves as tax-efficient investors. They’re partially right. Index ETFs are structurally efficient: low turnover, low dividends, no capital gains distributions. But they have one blind spot that costs money every year. When any position in the fund falls, the loss belongs to…
A well-managed index ETF is one of the most tax-efficient investment vehicles available. But it has one structural limitation that direct indexing solves: when a fund holds losing positions alongside winning ones, those losses belong to the fund – not to you. You cannot harvest them to offset gains elsewhere in your portfolio. Bouchey Financial…
Direct indexing is one of the fastest growing areas of wealth management that offers a wide range of advantages from customization to tax efficiency. Watch our recent webinar to learn more about: What is Direct Indexing Who Can Benefit Technology Enhanced Tax Loss Harvesting What Does This Look Like for You Recording available below! Play…
Written by: Paolo LaPietra, CFP® Technology has continued to enhance the relationship between investors and the markets. Going back to the early 1990s, one of the most significant milestones was the introduction of Exchange-Traded Funds (ETFs). ETFs allowed access to lower-cost diversification and tax efficiency compared to mutual funds and are now one of the…