For most investors seeking broad market exposure, an ETF does the trick. But with an ETF you get what you get. Want to screen against certain sectors or factors? You can’t—at least not without buying multiple ETFs and figuring out which ones offer what your client is looking for without duplication. Want to harvest individual tax losses? Nope. Not without liquidating the entire ETF. Want to gift certain appreciated names in the portfolio? Again, you’re out of luck with an ETF.
That’s where a custom SMA comes in. For investors who are tax sensitive and want more control over their passive investments, an SMA offers so much more flexibility. This short video explains the differences between ETFs and SMAs and outlines the advantages an SMA can offer.