The Gains and Losses of Direct Indexing with Matt Potter

Direct indexing is an index investing strategy that involves directly purchasing the components of a mutual fund or an ETF at the appropriate weights.

You may be wondering why an investor would want to complete so many transactions for similar holdings to a one-and-done mutual fund purchase. But there are specific potential benefits to direct indexing that may be intriguing. 

In this episode, Peter Raskin speaks with Matt Potter, chartered financial analyst & director of investment services at SEI Private Trust Company. Peter and Matt discuss best practices for how to navigate the stock market, specifically when it comes to direct indexing.  

Peter and Matt discuss:

  • What direct indexing is and why an investor may consider this approach
  • How taking a loss can potentially make your portfolio more tax-efficient
  • Why owning individual stocks provides more flexibility than a mutual fund or ETF
  • What a wash sale is and how direct indexing can help you avoid it
  • And More!

Related: Personal Investments With Personal Values