The Dispatch

Investing Q&A Series

Q: What do you offer that is a broadly diversified, low-cost, tax-efficient portfolio that is more refined than direct indexing?

A: Long before the term direct indexing gained popularity, the fractional share EQIS UMA models with multiple sleeves of equity SMA models were a sophisticated evolution of retaining individual equity ownership while being broadly diversified across multiple geographies, investment styles, market capitalizations, and sectors, ensuring clients achieve a comprehensive and managed exposure to global markets. This approach incorporates professional third-party managers without the typical operational complexities. For investors seeking a diversified, low-cost, and tax-efficient solution, we offer a range of managed model portfolios that provide broad market exposure while addressing specific client needs across all risk levels.

• EQIS Strategic
• EQIS Dynamic
• EQIS Strategic Tax-Managed

As ETF selection and use have expanded, we have added hundreds of model portfolios constructed exclusively or primarily with ETFs, which is also a diversified, low-cost, and tax-efficient alternative to direct indexing. These options offer broad market exposure while catering to clients interested in a less active structure. Some examples include:

• BlackRock Target Allocation Tax-Aware ETF
• Dimensional and DFA Core 
• 3D Global Portfolio

We also offer many highly diversified model portfolios that combine ETFs and mutual funds that are also attractive alternatives to direct indexing. Some examples include:

• Symmetry Tax-Managed Panoramic
• American Funds Tax-Aware

These solutions, and many others available on our platform, combine low cost and tax efficiency with advanced portfolio construction techniques, allowing clients to benefit from refined strategies tailored to their needs. Whether through EQIS UMA models or other tax-sensitive options, we aim to deliver an exceptional balance of efficiency, cost management, and strategic refinement.

Have investing questions, or even questions AND answers? Submit them to insights@freedomadvisors.com.