Direct Indexing: What You Need to Know

Charles Sachs, chief investment officer of Kaufman Rossin Wealth, was interviewed by CNBC to provide insight on direct indexing, an investment strategy that is gaining more traction. This strategy may appeal to those seeking portfolio customization or tax-saving opportunities.

Article Excerpt: Direct indexing may also appeal to those looking for more portfolio customization, such as value-based investors who want to divest from specific sectors, said Charles Sachs, CFP and chief investment officer at Kaufman Rossin Wealth in Miami.

Portfolio customization may also be handy for someone with many shares of a single stock. “It’s a great way to be able to tilt your portfolios to causes that you believe in.” For example, an Apple or Amazon executive may want to diversify by investing in an index without their company holdings. Direct indexing may allow them to cherry-pick their stocks, he said.

Read the full article on CNBC.

Charles Sachs, CFA, CFP®, is a Chief Investment Officer at Kaufman Rossin Wealth, LLC, a Registered Investment Adviser.