Smart Beta, Direct Indexing, and the All-Weather Portfolio
- Date:February 01, 2023
- William Trout
- Joel Hugentobler
- Report Details: 4 pages, 3 graphics
- Research Topic(s):
- Digital Wealth — Investor
- Wealth Management
- PAID CONTENT
Direct indexing through a smart-beta lens offers a compelling framework for the investor interested in capital preservation. It’s a best-of-both-worlds approach that boosts investing performance without taking on more risk. As such, it seeks to break the trade-offs at the heart of modern portfolio theory (i.e., greater returns come from greater risk). Investors who want to access smart-beta direct indexes have several options, including direct-to-investor solutions that can be bought off the shelf or customized to investor preferences. Such approaches can also be combined into a larger, more comprehensive portfolio that includes alternatives and even such non-securities instruments as annuities and cryptocurrency.
Capital Group, Charles Schwab, Fidelity Investments, Robinhood, SoFi, Vanguard, Wealthfront
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