Is direct indexing the right investment strategy for you? In this episode, Shawn Jaberzadeh, Co-Head of Enterprise Group at Dimensional Fund Advisors, breaks down how direct indexing works and when it might be a better fit than off-the-shelf investment options. We explore the key differences between standard and aggressive tax management, the role of separately managed accounts (SMAs), and how tax loss harvesting can impact your portfolio.
You’ll also learn who direct indexing benefits most, the potential drawbacks to consider, and how market volatility plays into investment decisions. Plus, we cover taxation differences between foreign and U.S.-based plans and the three main investment buckets every investor should know. If you’re wondering whether a customized approach to investing is right for you, this episode is a must-listen!
What You’ll Learn In Today’s Episode:
- What direct indexing is and how it works.
- When a separately managed account (SMA) makes sense.
- The difference between standard and aggressive tax management.
- How tax loss harvesting can benefit your portfolio.
- Who direct indexing is—and isn’t—a good fit for.
- The impact of market volatility on investment decisions.
- How taxation differs between U.S. and foreign investments.
- Why direct indexing isn’t always the default choice.
- The three main investment buckets to consider.
- The potential risks and rewards of direct indexing.
Ideas Worth Sharing:
- “There is a difference between investing in something that is off the shelf versus something that feels like it is curated for you.” – Shawn Jaberzadeh
- “Market volatility doesn’t happen every month or quarter, it happens when it happens.” – Shawn Jaberzadeh
- “The default isn’t that you need to have a separately managed account—it’s if you have particular circumstances, then you should consider whether it is right for your situation.” – Shawn Jaberzadeh
Resources In Today’s Episode:
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