PT - JOURNAL ARTICLE AU - Lisa Shalett AU - Daniel Hunt AU - Steve Edwards AU - Spencer Cavallo TI - Direct Indexing: Opportunities for Customization and Potential Tax Alpha AID - 10.3905/jbis.2022.1.009 DP - 2022 Apr 23 TA - The Journal of Beta Investment Strategies PG - jbis.2022.1.009 4099 - https://pm-research.com/content/early/2022/04/23/jbis.2022.1.009.short 4100 - https://pm-research.com/content/early/2022/04/23/jbis.2022.1.009.full AB - Direct indexing strategies, delivered through customized separately managed accounts (SMAs) with direct ownership of underlying index constituents, can benefit investors through their flexibility. That direct ownership allows for customizing, both by selecting a specific index and by employing screening to avoid or feature certain exposures. Moreover, for taxable investors, direct indexing may unlock “tax alpha,” generated through proactive, security-level tax loss harvesting.