More and more people are discovering the benefits of passive, or index, investing. For many, passive investments form the core of their holdings, helping reduce overall portfolio risk by adding broader market exposure to complement the individual securities—the active holdings—they and their advisor have selected.
Passive investors often turn to exchange-traded funds (ETFs) that track an index—such as the S&P 500® or the Barclay’s US Aggregate, to name two of the best-known equity and fixed income indexes, respectively. For most investors, this is fine. They get all the stocks or bonds in that index, indirectly leaving the decision of what’s in their portfolios to the index provider.
But what if your clients aren’t like most investors? What if they want passive exposure but don’t want to settle for someone else’s idea of what it should be? What if they want more control?
This is where custom direct indexing comes in. This brochure makes it easy for you to share the central concepts of Parametric’s Custom Core®—from tax management to ESG—with your clients.