What Is Direct Indexing
Direct Indexing allows investors to own individual stocks that replicate a broad index—like the S&P 500—rather than investing in a mutual fund or ETF. This allows greater customization, tax efficiency, and control over portfolios.
Why It Matters
Direct Indexing unlocks a level of precision and personalization that pooled vehicles can't match. It's especially valuable for high-income investors looking to:
Harvest Tax Losses More Frequently
Exclude Individual Stocks (ex: concentrated positions or ESG screens)
Reflect Personal Values or Goals
Maintain Index-Like Exposure while optimizing for after-tax returns
The Zoe Advantage
Daily Tax Loss Harvesting: we scan portfolios daily to capture tax savings opportunities.
Low Tracking Error: stay closely aligned with your benchmark index.
Automated & Efficient: no manual oversight required from advisors
Seamless Integration: built directly into our trading and rebalancing system
Rebalancing and Tax Loss Harvesting Alpha = Real Value
Leading research shows that Direct Indexing can generate ~136 bps in annual after-tax alpha, especially for high-income investors in taxable accounts. Zoe helps advisors unlock that value, without lifting a finger.
What Advisors Gain
Tangible Value to Clients: help clients keep more of what they earn through tax optimization.
Differentiation: offer institutional-grade capabilities without building in-house infrastructure.
Automation: save time while delivering personalization at scale.
Zoe's Direct Indexing is Ideal For
Tax-sensitive clients in non-qualified accounts.
Investors with concentrated stock exposure.
Socially responsible investors.
Having a long-term investment focus.