Brandon Hass, Head of Direct Indexing and Model Portfolios at S&P Dow Jones Indices, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss partnering with Brooklyn Investment Group to offer customizable indices.
Direct indexing is a separately managed account (SMA) designed to provide a risk-return profile similar to an index such as the S&P 500 Index. The direct indexing strategy might not directly replicate the index but can differ in weightings, tilts, factors, and sector exposures.
S&P Dow Jones Indices builds benchmarks that represent specific market segments and exposures. These benchmarks can be used in the portfolio construction process. The firm provides intellectual property to asset managers, financial advisors, and fintech companies that can be used to create products that directly track an index or seek to modify the risk-return characteristics of the index portfolio. Examples include passive index funds and smart beta ETFs.
MyIndexTM is powered by S&P Dow Jones Indices in collaboration with Brooklyn Investment Group. A series of index packages will be available on Brooklyn’s managed account platform. MyIndex offers four index series, including S&P US Core, S&P World Index (broad market index), ADR Indices, and the Total Market Index. Advisors can use these 300,000 indices to build custom portfolio index construction, applying overlays such as tax optimization, transitions, and client preferences.
S&P provides thought leadership that can guide advisors in portfolio construction. SPIVA (S&P Indices vs Active) quantifies the relative performance of active vs passive strategies, demonstrating that passive investing typically outperforms active investing over time.
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