Quantitative Direct Indexing
Unleashing Data-Driven Investment Strategies for Enhanced Returns
Direct indexing (also known as direct index investing) strategies are appealing for several reasons:
- Tax efficiency:Â Direct indexing can be more tax-efficient than traditional index investing, as investors can sell individual stocks that have appreciated in value without triggering capital gains taxes.
- Portfolio customization:Â Direct indexing allows investors to customize their portfolios to their specific needs and goals. For example, investors can overweight or underweight certain sectors or industries, or they can exclude companies that they don't support.
- Transparent Ownership:Â With direct indexing, investors directly own the underlying securities. This transparency provides clarity on individual stock holdings, dividends, and voting rights, granting investors a more comprehensive understanding of their investments compared to traditional fund structures.
Why Custom Direct Indexing is the Future of Personalized Investing.Â
Most popular indexes follow chosen benchmarks passively. As such, valuations are of no consideration, and drawdown risks are accepted.Â
Direct Indexing, which allows investors to own the constituents of an index directly, is growing in popularity as it allows investors advantages such as tax harvesting and customization.Â
But to date, most customization has been limited to excluding certain stocks or adding tilts as defined by the investor.Â
But the application of direct indexing goes far beyond as robust strategies can be easily replicated and applied as indexes.
We have created innovative strategies that better address investor needs than simple market exposure does - such as attempting to minimize downside capture, purer momentum plays, and novel approaches to capturing dividend growth and yield.
The following indexes are made available to individual investors only.
Financial advisors and institutions interested in index strategies should see BX Indexing to discuss licensing the use of an index. Â
Drawbridge US Equity Focus 10
The Drawbridge US Equity Focus 10 Index is a rules-based strategy that selects the top ten ranked stocks from the S&P 100. Stocks are ranked by momentum and position size is determined by volatility. The strategy will allocate cash as determined by the algorithm to help manage downside risk.
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US-DB-PI-DY50 (Dividend Yield)
Drawbridge-phaseinvest US-DB-PI-DY50 holds securities with the highest dividend yield within a US universe of stocks with a consistent long-term track record of growing dividend payments. The strategy overlays phaseinvest’s proprietary regime identification model for the final selection.
US-PI-MOM50 (Momentum)
phaseinvest US-PI-MOM50 holds securities with the best risk-adjusted momentum attribute in large-cap US equities as identified by its proprietary regime identification model.
US-PI-VOL50 (Low Volatility)
phaseinvest US-PI-VOL50 holds securities with the lowest volatility attribute in large cap US equities as identified by its proprietary regime identification model.
US-PI-DY_MOM50Â (Dividend Yield and Momentum Blend)
US-PI-DY_MOM50 is a 50-50 blend of the US-DB-PI-DY50 dividend-focused index and the US-PI-MOM50 momentum-focused index. The portfolio aims to hold 50 stocks.
Ready to Embrace the Future?Â
We offer a personalized and custom approach that combines our indexes with your investment needs.
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