Investment Strategy
Direct Indexing Strategy
Own the stocks in an index directly, for stock-level tax management and customization.
Overview
Direct indexing lets you hold the individual securities that compose a benchmark, giving you the flexibility to harvest losses, express personal values, and manage concentrated positions, all while maintaining broad market exposure.
Selectively realizing gains and losses at the single-stock level can add incremental after-tax value over time when harvesting opportunities are available. Results are not guaranteed, and a direct-indexed portfolio can perform differently from its benchmark (tracking error). Evaluate your current risk profile with our free assessment tool.
It’s especially useful if you hold concentrated or highly appreciated stock, whether from vesting RSUs, a company sale, or an inherited position: own the individual names, harvest losses at the stock level, and diversify more tax-efficiently over time. See how this fits The Rubric Unwind for concentrated stock, or planning around a liquidity event.
What it involves
The control of individual stock ownership with the breadth of an index.
You Own Every Share
Hold the individual stocks behind an index, not a fund, and see every holding.
Precision Tax Management
Harvest gains and losses at the single-stock level to seek improved after-tax returns.
Invest Your Values
Include or exclude specific securities, sectors, or industries to reflect what matters to you.
Legacy Position Integration
Fold concentrated or inherited holdings into a diversified portfolio while managing the tax cost of transition.
Common questions
What is direct indexing?
How can direct indexing help with a concentrated stock position?
Does a direct-indexed portfolio track its index exactly?
Next step
Is direct indexing right for you?
Let’s see whether direct indexing fits your taxable account and any concentrated position.
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