How Should You Invest $10M+? Most Underutilized Strategy Revealed

Описание: If you have a $10M+ portfolio—or even less—you should consider direct indexing, an advanced investment strategy. Instead of owning an ETF or mutual fund like the S&P 500, direct indexing allows you to own individual stocks that make up the index, enabling more granular control. This approach unlocks powerful benefits, particularly through tax-loss harvesting. By selling underperforming stocks, locking in losses, and reinvesting, investors can offset gains elsewhere, reducing taxes without losing market exposure.

Direct indexing also offers flexibility for concentrated stock positions, charitable giving, or customizing portfolios to exclude certain sectors. Studies show this strategy can deliver “tax alpha,” boosting returns by 0.5%-1.85% annually over decades, without added risk.

While traditionally reserved for ultra-wealthy investors, advances in technology have made it accessible to portfolios starting at $500K. However, success requires sophisticated tools and tax expertise. If you meet criteria like high tax brackets or large unrealized gains, direct indexing could significantly enhance your long-term net returns.

Link to Whitepaper: https://drive.google.com/drive/folder...

Questions answered:
1. How can direct indexing and tax-loss harvesting improve investment returns without increasing risk?

2. Who benefits most from using a direct indexing strategy?

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⏱Timestamps:⏱
0:00 - The strategy - direct indexing
3:57 - Tax loss harvesting
7:22 - More than locking in losses
9:36 - The research
11:38 - An involved process
13:05 - Criteria 1, 2, and 3
17:04 - Criteria 4 and 5
19:52 - More accessible due to technology

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