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Provider directory and capabilities matrix
Table of Contents:
Categories of Direct Indexing Providers
- Traditional Asset Managers
Focus on portfolio customization and tax management, leveraging established investment strategies - Technology-Only Platforms
Specialize in software solutions for advisors or investors to implement direct indexing strategies - Custodial Direct Indexing Platforms
Offered by custodians; integrate seamlessly with other account management tools - Turnkey Asset Management Platforms (TAMPs)
Provide direct indexing within a comprehensive suite of investment and advisor management tools
Provider Directory and Comparison
– Traditional Asset Managers
Provider | Key Features | Benefits | Minimum Investment | Fees |
---|---|---|---|---|
Parametric | ESG customization, tax-loss harvesting, factor-based portfolios | Deep expertise in tax management and personalization | $250k | ~0.20% AUM |
BlackRock Aladdin Wealth | Tax-efficient index tracking, ESG customization | Access to BlackRock’s investment tools and analytics | $100k | Not disclosed |
DFA | Factor-based customization, tax management | Robust academic approach to direct indexing | $100k | 0.35% AUM |
– Technology-Only Platforms
Provider | Key Features | Benefits | Minimum Investment | Fees |
---|---|---|---|---|
Alphathena | Highly customizable, integrates with advisor workflows | Advanced tax optimization, household-level customization | Not disclosed | 0.10% – 0.20% AUM |
Ethic | ESG-focused customization | Deep ESG integration, user-friendly interface | $250k | ~0.40% AUM |
Just Invest | Custom portfolios, tax-loss harvesting | Flexible integration for RIAs | $100k | ~0.25% AUM |
– Custodial Platforms
Provider | Key Features | Benefits | Minimum Investment | Fees |
---|---|---|---|---|
Schwab Personalized Indexing | Tax-loss harvesting, ESG options | Seamless integration with Schwab accounts | $100k | 0.35% – 0.40% AUM |
Fidelity FidFolios | Low minimums, automated direct indexing | Easy entry-level solution for customization | $100k | 0.40% AUM |
Vanguard Personalized Indexing | ESG and factor-based customization | Combines Vanguard’s low-cost ethos with direct indexing | $100k | ~0.40% AUM |
– Turnkey Asset Management Platforms (TAMPs)
Provider | Key Features | Benefits | Minimum Investment | Fees |
---|---|---|---|---|
Orion Portfolio Solutions | Modular platform, tax-efficient transitions | Integrated tools for proposals, reporting, trading | $100k | Not disclosed |
AssetMark (via Adhesion) | Advisor support, tailored solutions | Simplified onboarding for advisors | $250k | ~0.30% AUM |
Envestnet Quantitative Portfolios | ESG, tax-loss harvesting, scalability | Extensive experience, broad customization | $100k | ~0.20% – 0.35% AUM |
SEI Managed Accounts | Dividend-focused, fixed income strategies | Personalized tax-efficient strategies | $100k | ~0.25% AUM |
– Comparison of Features and Benefits
Feature | Traditional Asset Managers | Technology Platforms | Custodial Platforms | TAMPs |
---|---|---|---|---|
Tax-Loss Harvesting | Advanced, experience-driven | Automated and customizable | Integrated, limited to custodian’s accounts | Strong integration, multi-account support |
Customization Options | Factor-based, ESG, dividends | Highly flexible, deep ESG focus | Moderate, tailored to custodian tools | Broad, includes household-level solutions |
Ease of Use | Advisor-dependent setup | Intuitive software | Seamless if using custodian ecosystem | High, with advisor support |
ESG Integration | Moderate to High | High | Moderate to High | High |
Minimum Investment | $100k – $250k+ | $100k – $250k+ | $5k – $100k+ | $100k – $250k+ |
Technology Integration | Limited | Strong | Moderate | Advanced |
Key Takeaways
- Traditional Asset Managers: Excellent for HNW clients who value in-depth tax expertise and established investment capabilities.
- Technology-Only Platforms: Provide cutting-edge flexibility and ESG features, ideal for RIAs seeking modern toolsets.
- Custodial Platforms: Offer seamless account integration and lower barriers to entry, though customization can be limited.
- TAMPs: Balance strong advisor support with broad customization, making them suitable for scaling practices.
Offer personalized experiences for every client at scale