Smartleaf announced today it is partnering with IDX Insights to provide Smartleaf clients access to additional direct index models in the major equity asset classes, beginning with US large-cap high dividend, mid and SMID index models and ADR-based foreign models. Each index will contain approximately 50 stocks.

This investment vehicle offering will provide Smartleaf clients with the option to provide their clients low-cost alternatives to actively managed models, as well as cost-competitive alternatives to ETFs and mutual funds. Direct index portfolios managed through the Smartleaf system are tax optimized and clients are able to apply security, sector and ESG screens.
The US large, mid and SMID models are designed to track broad market-cap exposure to US large-cap, mid-cap and small-cap stocks respectively. The ADR-based models are designed to track broad international developed stock exposure.

The first set of direct indexes will be made available to Smartleaf clients in Q2 of 2020. Altium Wealth, named one of America’s 50 fastest-growing RIAs by FA Magazine in 2018 and 2019, will be an early adopter. Jim Dowling, Managing Director of Altium Wealth, commented that, “the combination of IDX’s indexes and Smartleaf’s customization and tax-management analytics enables us to provide a level of transparency and execution that our clients deserve. We have worked with both IDX and Smartleaf previously and we are excited to see them partner together in this capacity. This is where the industry is heading, and we are proud to be teaming up with IDX and Smartleaf to make this possible.”

Andrew Swan, Principal at IDX Insights, added, “We see tremendous demand for direct index models and direct index portfolios. That demand is driven by a need to lower costs and provide clients with greater customization and tax efficiency. Smartleaf is a market leader in supporting customization and tax optimization at scale. It’s a powerful combination.”
“IDX Insights is an industry leader in the generation of sophisticated tracking and factor-based index models. We are thrilled to be partnering with IDX to expand our direct index offering,” says Jerry Michael, Smartleaf’s President. “Through our partnership with IDX, we will enable our clients to leverage direct indexing to lower costs and increase after-tax expected returns, while offering investors greater customization options.”
About Smartleaf

Smartleaf re-engineers portfolio management to enable wealth-advisory firms to effortlessly deliver exceptional tax management and customization to every client, at unprecedented scale. Our software platform is used by some of the nation’s largest firms to manage $50 billion in assets — everything from custom-tailored $66MM taxable UMA accounts to $5 robo accounts with fractional shares.

We allow firms to move upmarket by offering industry-leading transition, customization and tax optimization services. And we help firms implement hyper-efficient delivery models to economically serve the emerging mass affluent – all with one system. To learn more, visit smartleaf.com.
About IDX Insights

IDX Insights is a pioneer in enhanced factor beta research and hedge fund replication, dedicated to raising the bar for market beta and creating value for investors. We aim to make an impact through our research insights and index development. To learn more, visit idxinsights.com.