Modern Investing: Ultra-Tailored·Tax-Smart ESG 🌎 Direct Indexing

Direct Indexing

Fully personalized, tax-smart

Direct indexing offers complete customization and tax efficiency.

Direct Indexing with IMPACTADVISOR

DirX.ai

① Power of Choice

Complete customization: your portfolio can be diversified around a wide range of options. Your core values can be an input for the portfolio construction engine that seeks best-of-breed companies in a responsibly-diversified portfolio.

② Effortless Tax Optimization

DirX.ai: add 1-2%+ annually of 'tax alpha':
AI/ML (machine learning) methodology for gain & loss realization that is tailored to your tax profile and the realtime market conditions.

Taxes matter. Learn more:
Tax Impacts.com tax calc·optimizer

No-Compromise Investing, without Compromising Performance.

Evolution of Indexing | Direct Indexing

For investors in high-tax states with taxable-account holdings, direct investing allows much easier tax-loss harvesting, because he can trim individual stock holdings, rather than a basket of ETFs.

“You open up a wide range of tax opportunities,” he said, including moving appreciated holdings into donor-advised funds.

“The beauty of direct indexing is you can pick what your definition of responsible investing is,” Escamilla added

ETF Report, March 2021: The Indexing Issue

Direct Indexing | Advisors & ETFs: A Perfect Match?

There are two benefits to direct indexing: better customization and even greater tax efficiency. Being based in San Francisco with clients in the technology industry and residing in a high-tax state such as California, direct indexing makes a big difference, Escamilla adds.

“Direct indexing is an incredible product for a high net worth person who has professional support from a CPA and an advisor,” he says, noting direct indexing brings a level of complexity. “If you do direct indexing, you start to lose your ability to do your taxes on an iPhone app.”

...another way he mitigates tax hits is to use closed-end municipal bond funds. Escamilla watches for sizable discounts to occur, such as what happened in the March sell-off, which gives him a margin of safety for clients while adding alpha over time.

ETF.com, Sept. 2020

Direct Indexing = Personalization

IMPACTADVISOR LLC

Modern Investing:
Ultra-tailored, Tax-aware wealth management
for professionals, business owners and retirees.

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