Vestmark: 6 New Direct Indexing Strategies Launched

Vestmark Launches Six New Direct Index SMA Strategies Targeting Diverse Investment Goals

Wakefield, Massachusetts – In a move set to expand investment possibilities, Vestmark Inc. has announced the launch of six new direct index, Separately Managed Account (SMA) strategies. These “Focused Index portfolios” arrive through a collaboration with S&P Dow Jones Indices,leveraging equity benchmarks licensed from the index provider.

The wealth management software and services provider will offer these SMAs through its Vestmark Manager Marketplace, broadening access to customized investment solutions.

New SMA Strategies Tailored to Specific Indices

Three of the SMA strategies use newly created, custom indices from S&P Dow Jones Indices. These select constituents from the large-cap S&P 500 Index and the S&P 500 Catholic Values Index.

According to Vestmark, the indexes are constructed to measure the performance of a subset of securities from an underlying index, offering a more focused investment approach.

Current Strategies now accessible through Vestmark include:

• The S&P 500 Focused 100 VAST Portfolio.
• The S&P 500 Focused 50 VAST Portfolio.
• The S&P 500 Catholic values Focused 100 VAST Portfolio.

Expanding Investment Options: Dividend, ESG, and International Focus

The remaining three strategies are based on existing indices that focus on dividend-payers, ESG (Environmental, Social, and governance), and international developed markets.

These include:

• The Dow Jones U.S. Dividend 100 VAST Portfolio.
• The S&P 500 ESG Elite VAST Portfolio.
• The S&P Developed Markets 100 ADR xUS VAST Portfolio.

These diverse options offer investors a broad range of investment focuses.

Accessibility and Advisor Adaptability

The six strategies feature investment minimums starting as low as $100,000, making them accessible to a wider range of investors.

Additionally, advisors can customize stock exposures, such as using Vestmark’s strategy based on the Dow Jones U.S. Dividend 100 Index, which is comprised of large-cap stocks.

Did You Know? Direct indexing allows for greater tax optimization and customization compared to traditional ETFs or mutual funds.

Key Details summarized

Strategy focus	Index Basis	Minimum Investment
S&P 500 Focused	Custom Index from S&P 500	$100,000
S&P 500 Catholic Values Focused	Custom Index from S&P 500 Catholic Values	$100,000
Dow Jones U.S. dividend 100	Dow Jones U.S. Dividend 100 Index	$100,000
S&P 500 ESG Elite	S&P 500 ESG Elite Index	$100,000
S&P Developed Markets 100 ADR xUS	S&P Developed Markets 100 ADR xUS Index	$100,000

The Rise of Direct Indexing: An Evergreen Perspective

Direct indexing, also known as personalized indexing, has gained considerable traction in recent years. Unlike traditional investment vehicles like ETFs or mutual funds, direct indexing allows investors to own the underlying securities of an index directly. This offers numerous advantages, including greater control over portfolio construction, enhanced tax-loss harvesting opportunities, and the ability to align investments with specific values or beliefs.

As technology continues to evolve and costs decrease,direct indexing is expected to become even more accessible to a wider range of investors. Financial advisors are increasingly adopting direct indexing strategies to deliver tailored solutions that meet the unique needs and preferences of their clients.

Pro Tip: Consider the tax implications and trading costs associated with direct indexing before making investment decisions.Work with a qualified financial advisor to determine if direct indexing is right for you.

Frequently Asked Questions About Direct Indexing

• What are the main benefits of direct indexing?

  Direct indexing offers greater control, tax optimization, and customization compared to traditional investment funds.

• How does direct indexing differ from investing in an ETF?

  With direct indexing, you own the individual stocks within the index, whereas, with an ETF, you own shares of a fund that holds those stocks.

• What is a Separately Managed Account (SMA)?

  An SMA is a portfolio of investments managed by a professional investment firm for a single investor.

• Are direct index strategies suitable for all investors?

  Direct index strategies may be more suitable for investors with a higher level of investment knowledge and a longer time horizon.

• What role do indices play in direct indexing?

  Indices serve as the benchmark for constructing and managing a direct index portfolio.

• How can I get started with direct indexing?

  Consult with a financial advisor who offers direct indexing services to assess your suitability and explore available options.

What are your thoughts on these new direct index SMA strategies from Vestmark? How might direct indexing fit into your investment strategy?

Share your comments below!

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Vestmark: 6 New Direct indexing Strategies Launched – Revolutionizing Wealth Management

Vestmark, a leading innovator in wealth management technology, has recently unveiled a meaningful expansion of its direct indexing capabilities.This release features 6 new direct indexing strategies designed to empower financial advisors and transform the way portfolios are constructed and managed. This article dives deep into these strategies, exploring their benefits and implications for the modern financial landscape.We will cover topics such as tax-loss harvesting, portfolio customization, and direct indexing advantages.

Understanding Direct Indexing and its Importance

Direct indexing allows investors to own the individual stocks that make up an index, rather than investing in an ETF or mutual fund. This offers a range of potential benefits, including greater control, tax efficiency, and the ability to personalize portfolios. Let’s look closely at what is direct indexing and the value it can bring.

• Tax-Loss Harvesting: A key advantage of direct indexing. The ability to strategically sell losing positions to offset capital gains.
• Customization: Build portfolios aligned with specific values, environmental, social, and governance (ESG) preferences, and market outlooks.
• Transparency: Investors have complete visibility into holdings.

The Core Benefits of Vestmark’s Direct Indexing solutions

Vestmark’s advanced platform leverages cutting-edge technology, providing a robust and scalable solution for financial advisors. The new strategies build upon this foundation, enhancing the potential for improved client outcomes. These strategies focus on enhanced returns and risk management.

The 6 New Vestmark Direct Indexing Strategies Unveiled

Now, let’s explore the heart of the news: the specifics of the 6 new direct indexing strategies. Each strategy is designed to cater to various investment objectives and client profiles. Explore the innovative approaches to portfolio diversification and customized investment plans.

Strategy Name	Primary Focus	Key Features
core Equity	broad Market Exposure	Tracks major market indices Cost-effective and diversified
ESG Integration	Enduring Investing	Incorporates ESG factors customizable ESG screening
Tax-Advantaged	Tax Efficiency	Optimized for tax-loss harvesting Minimizes capital gains distributions
Factor-Based	Smart Beta Strategies	Focuses on specific factor exposures (e.g., value, growth) Enhanced risk-adjusted returns
Customized Sector	Sector Tailoring	Allows over/underweighting of specific sectors Enhances sector-specific exposures
Concentrated Positions	Overcome challenges of concentrated equity positions	Tools to build a diversified portfolio based on concentrated equity positions. Allows for diversified ownership, using hedging and tax-loss harvesting.

Real-World Application and case Studies

To better understand the practical impact, let’s explore some real-world examples. These case studies highlight how advisors can leverage Vestmark’s new direct indexing strategies to achieve specific client goals. This information will cover performance analysis and investment strategy examples.

• Case Study 1: A high-net-worth client seeking a tax-efficient portfolio and ESG investments. The “Tax-Advantaged” and “ESG Integration” strategies were combined with personalized customization to create an optimized and strategic investment.
• Case Study 2: A financial advisor used the “Core Equity” strategy to provide broad market exposure, complementing this with a customized approach by the addition of Vestmark’s “Customized Sector” allowing increased concentration in the Healthcare sector.

Practical Tips for Advisors and Investors

Successfully integrating these new strategies requires careful planning and execution. Here are some practical tips to help financial advisors and investors maximize their benefits.

• Understand Client Needs: Thoroughly assess the client’s risk tolerance, investment objectives, and tax situation.
• Educate Clients: Explain the benefits of direct indexing, including the potential for tax efficiency and customization.
• Leverage the Platform: Utilize Vestmark’s technology to its fullest potential, from portfolio construction to ongoing monitoring and rebalancing.
• Monitor and Adjust: Regularly review portfolio performance and make adjustments as needed to align with client goals and market conditions.

For more detailed information, or support please contact Vestmark directly.