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An index-based portfolio, completely tailored to you.
Tax-loss harvesting
A tax-efficient solution for taxable investment accounts, Savvy Direct Indexing gives you tax-loss harvesting and portfolio rebalancing to potentially maximize after-tax returns by offsetting gains with losses.
Direct ownership
Build your own personalized portfolio based on your unique values with direct ownership of individual stocks that match the profile of your desired set ETFs and mutual funds.
Risk management
Rebalance your concentrated portfolio positions based on your risk preferences.
Complete transparency
Savvy Direct Indexing gives you full transparency into your underlying investments as a separately managed account (SMA). Get greater insights into how your money is being managed.
Custom exclusions
Ever wish a specific mutual fund or ETF didn’t include a specific stock? Savvy Direct Indexing gives you the ability exclude a stock, sector, region, or country etc to meet your preferences.
Maintain cost basis
Transfer low cost-basis positions (like stock from a past employer) into a Savvy Direct Indexing account and build a portfolio that maintains them while still working to track a broader index.
How it works
See exactly how Savvy Direct Indexing delivers tax-efficient personalized portfolio customization, expert 1-on-1 advice, real-time performance tracking and more.2
Advantages over ETFs and mutual funds
Choose and customize your positions with greater flexibility than that offered by mutual funds and ETFs.
Track performance against broader indexes (like the S&P 500) and auto-rebalance in real-time.
Work 1-on-1 with a Savvy Advisor to build your optimal portfolio.
Offset capital gains with capital losses to net potential tax savings.
Remember, the performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
Explaining the numbers
In this hypothetical example, our Savvy Direct Indexing client has experienced a potential capital gain of $20,000 in Position A, but a potential capital loss of $25,000 in Position B.
Based on her preferences, Savvy Direct Indexing can offset the taxes potentially owed on her capital gains with those potentially owed from her capital losses to net a total potential tax savings of $8,050.
Disclosure: Hypothetical or simulated performance is not indicative of future results. Information presented is for discussion and illustrative purposes, and not a recommendation, offer, or solicitation to buy or sell any securities.
Explaining the numbers
In this hypothetical example, our Savvy Direct Indexing client has experienced a potential capital gain of $20,000 in Position A, but a potential capital loss of $25,000 in Position B.
Based on her preferences, Savvy Direct Indexing can automatically offset the taxes potentially owed on her capital gains with those potentially owed from her capital losses to net a total potential tax savings of $8,050.
Disclosure: Hypothetical or simulated performance is not indicative of future results. Information presented is for discussion and illustrative purposes, and not a recommendation, offer, or solicitation to buy or sell any securities.
Backed by Industry Research
Research suggests that an optimal tax loss harvesting strategy (selling an asset when its price is lower than what you paid for it, and using those losses to offset gains amongst your other holdings) could improve after-tax returns by ~1% annually, leading to better outcomes, especially over longer time horizons.3
Source: FactSet, as of April 8, 2022. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
*1 - Results achieved by Savvy Advisors clients are an illustration of the benefits of this process but do not represent the results achieved by all Savvy Advisors clients. Past performance is not indicative of future results.
*2 - For educational purposes; not intended to be investment advice. Source: Charles Schwab.
*3 - Source: Vanguard
Savvy Advisors, Inc. ("Savvy"), an SEC registered investment adviser, is a wholly-owned subsidiary of Savvy Wealth, Inc. The information included herein is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors.
Customized direct indexing is subject to investment style risk, which is the chance that returns from the types of stocks selected will trail returns from referenced indexes. Customized direct indexing is subject to the risk that poor security selection will cause underperformance relative to benchmarks or funds with a similar investment objective.
Tax-loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications. Prospective investors should consult with their tax or legal advisor prior to engaging in any tax-loss harvesting strategy. Savvy does not provide tax or legal advice.
FAQ
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