Direct Indexing

As transition activity increases, what was once seen as a step between portfolios is becoming part of the outcome itself. Execution is now more closely tied to how portfolios are reshaped, particularly as restructures grow larger, more frequent, and more complex.

Technology is transforming bond investing, across research, trading and—through optimizers—portfolio construction. We believe optimizers based on advanced digital investment platforms have a major advantage—and can create new levels of insight for portfolio managers that have them.

In a year that started with volatility, direct indexing had ample opportunity to take advantage of loss harvesting opportunities.

Tax management is about more than just deferring taxes to reduce this year’s bite. It’s also about managing where and how taxes show up over time. For high-net-worth investors with diversified portfolios, permanently reducing taxes versus deferring them may bolster long-term after-tax wealth. Many investors overlook a potent tax reduction tool: bonds.

Investors are starting to understand that robotics and AI each represent an industry of industries. Not a sector. Not a theme. The foundational technology stack that every other industry increasingly depends on. In Q1, the market decided to stress-test that thesis, and the results tell a more nuanced story than the headline numbers suggest.

Fixed income markets have faced a challenging stretch following the escalation of conflict in the Middle East. Sharply rising oil prices and renewed inflation concerns have pushed US Treasury yields higher, and municipal bonds have moved in tandem.

Every March people around the country start talking about their brackets. Most are referring to their basketball tournament bracket, hoping to predict the winners and maybe earn some office bragging rights.

While the tax conversation may seem to end on April 15, we think tax season could be the time to start a better approach to tax planning—a natural moment to reflect on how investments are managed, looking for ways to help reduce tax drag and increase the potential for after-tax performance going forward.

In today’s era of automation, some situations demand a more active approach. Municipal bond investing is one.

If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our risk review team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?

Learn how RIAs are using Section 351 ETF conversions to modernize SMA strategies, defer capital gains, and boost firm valuation.

The financial advisory space has never been more competitive, or more ripe for transformation. Fee compression, AI encroachment, tightening compliance, and clients with increasingly sophisticated expectations are pushing experienced Advisors to ask a fundamental question: Is it time to make a move?

In February, market sentiment was shaped by escalating US-Iran geopolitical tensions and sector-specific selloffs driven by concerns about AI’s potential disruption to existing business models.

In practice, many advisors use SMAs alongside ETFs, not instead of them—combining the scalability of ETFs with the customization and tax management SMAs can provide.

Some forms of technical analysis are often too much “inside baseball” for many investors. However, the concept of moving averages is one of the most important technical indicators and an easier one to grasp.

The Qualified Opportunity Zone (QOZ) program is entering a pivotal transition period, with some legacy incentives expiring this year and a redesigned framework set to take effect next year.

Improving after tax returns is rarely as simple as boosting pretax returns or reducing tax expenses. It’s actually quite a bit more involved than that. As we see it, maximizing after-tax performance requires an “all of the above” approach, applying a range of techniques in a holistic way.

January is a time to revisit financial plans, make changes, and ensure objectives are being met. This review isn’t about exposing bad financial plans, but instead finding what is outdated and revising.

As investor expectations evolve, and tax awareness becomes more central to portfolio construction, active tax management has emerged as a defining feature of sophisticated investment strategies. Across both equities and fixed income, disciplined processes may help investors retain more of what they earn.

For today’s RIAs, the tension is real. Many clients seek portfolios tailored to their individual goals and values, while advisory firms also aim to deliver that level of service efficiently and at scale.

Many software stocks have been under pressure in recent months, as investors have started to perceive them as vulnerable to emerging artificial intelligence technology. As highlighted in the “6-Month Price History of the S&P Software and Service Index” chart, software stocks have declined roughly 27% from their September 2025 high.

The year is young, but already, a clear theme is emerging: investors are looking to add international equities exposure to their portfolios. ETFs already offer a wide variety of options for investors to get that exposure, but which fund or funds make th

There’s no stopping the momentum in the ETF market. January 2026 brought a record $166 billion in net inflows, surpassing the last three Januarys combined.

The year is young, but already, a clear theme is emerging: investors are looking to add international equities exposure to their portfolios. ETFs already offer a wide variety of options for investors to get that exposure, but which fund or funds make the most sense?

For high-net-worth individuals, investing success is not singularly defined by returns. Taxes, often the single most considerable drag on long-term wealth, play an equally critical role. As tax policy continues to evolve, the difference between a reactive approach and a coordinated, tax-aware strategy can be substantial.

Our underlying theme for 2026 is that investors should focus on Process Over Predictions. The instinct of many investors is to chase the "winners" of the previous cycle or expect spectacular growth to continue indefinitely.

Client demand for tax planning is high, yet many advisors may still fall short of meeting expectations. Direct indexing can offer tax benefits such as the potential for tax-loss harvesting but remains underutilized across the advisor community.

In our view, 2025 reinforced a familiar conclusion that tax management remains as relevant as ever, even though tax policy may no longer be a moving target.

Coming into 2026, investors face a landscape shaped by persistent inflation, evolving US monetary policy and global uncertainty. At Parametric, our systematic and customized approach is designed to help clients navigate these complexities while preserving after-tax returns.

Equity markets have delivered strong returns in recent years, leaving many investors with substantial unrealized gains across their portfolios. Let’s consider how a tax-managed long-short strategy could be a powerful tool in the pursuit of tax efficiency—for the right investor.

Janus Henderson Group, a leading global asset manager, today announced it has entered into a definitive agreement to acquire 100% of Richard Bernstein Advisors (“RBA”), a research-driven, macro multi-asset investment manager. The acquisition positions Janus Henderson as a leading model portfolio and separately managed account (SMA) provider.

Another strong year for US equities in 2025 reminds us that tax loss harvesting has the potential to contribute substantial value to direct indexing portfolios—even during bull markets.

As index investing continues to evolve, it does not have to be towards ever-expanding complexity. Sometimes progress comes from asking simpler questions and answering them consistently.

As we step into 2026, the financial landscape is shifting rapidly—new legislation, evolving markets, changing interest rates, and changing family needs may all shape the choices you make today.

Portfolio customization and tax management were once reserved for a financial advisor’s wealthiest clients. That era is ending. Tax efficiency and customization are fast becoming core components of wealth management beyond the top income tiers.

In this video, Chuck Carnevale, co-founder of FAST Graphs and “Mr. Valuation”, continues his series on portfolio construction by shifting the focus from retirees to younger, pre-retirement investors building wealth for the future-how young investors can build a future retirement with dividend growth.

We expect the US economy to remain resilient in 2026, providing a constructive backdrop for risk assets, as well as corporate and municipal credit. But the mix of macro uncertainty, policy division and elevated deficits could widen the range of potential outcomes and increase rate volatility—especially as the Federal Reserve approaches the neutral rate.

In today’s complex financial landscape, taxable US institutions face unique challenges in balancing their investment objectives with tax efficiency. They simply cannot afford to overlook the impact of taxes on their portfolios.

As wealth continues to grow along with soaring equity markets, and technology enables customization and choices once reserved for a select few investors, financial advisors are tasked with constantly evolving to maintain their value position.

Looking at your portfolio and feeling a distinct lack of income? Now may be the time to get more income into portfolios, with this version of covered call ETFs offering a solid option.

Are you looking to combine small-cap upside with income? With markets seeing increased volatility and large-caps looking expensive, marrying the two could boost portfolios.

As 2025 draws to a close, investors and advisors will be considering their tax-loss harvesting opportunities. By selling some investments at a loss, those investors can reduce their overall tax bills next year.

Many may look at a headline performance figure like “the bond market is up 7%” and understandably feel encouraged. On paper, that appears to be a solid result. But nominal returns alone rarely tell the full story.

As the year winds down, many investors focus on year-end charitable giving and tax planning. Finding a charity and donating money is the easy part. Taking slightly different approaches to gifting can yield dramatically different results from a tax perspective.

We live in what Brett Arends claimed as“The Dumbest Stock Market In History,” but I believe it is potentially the most dangerous era. That phrase is not hyperbole as it reflects structural distortion, extreme valuations, and an investor base intoxicated by momentum and narrative.

For those new to the practice, it’s relatively straightforward. Nearly every investor and advisor has an investment that is on track for a loss this year. Not all investments hit, after all. Selling at a loss helps tamp down a portfolio’s overall gains for the record books, reducing the end-of-year tax bill, “harvesting” losses to offset gains.

The interest rate volatility over the last three years has many investors reaching for bond ladders. We think there’s a best number of bonds to navigate the market and, coincidentally, it has something in common with a sci-fi classic.

If an investor has ever asked “Can you help me pay less in taxes?” then you’re not alone.

As our title suggests, September saw positive performance in fixed income markets but a great and overdue catch-up for municipal bonds.

After joining the World Trade Organization (WTO) in 2001, China’s trade with Latin America grew an average of 31% a year for approximately the next decade. In 2024, bilateral trade between the two regions hit $518 billion, overtaking the U.S. as South America’s top trading partner.

As the Fall gets into gear, more and more investors and advisors will be considering their end of year tax bills. While markets saw plenty of uncertainty and upheaval so far in 2025, many will be facing significant tax implications on their gains.

Since the recovery from the global financial crisis (GFC), the S&P 500 has delivered one of the strongest and longest bull markets in U.S. history, with 16.2% annualized returns.