A New Frontier in Personalized Investing
Intelligent Indexing lets advisors replicate ETFs or entire ETF portfolios within separately managed accounts (SMAs) creating a more efficient, flexible, and customizable alternative to static direct indexing.
Limitation
The Limitations of Traditional Direct Indexing
Broad Benchmarks = Shallow Personalization
Most direct indexing tools simply mirror broad indices like the S&P 500. This creates overlap, “false diversification,” and little room for true customization. Instead, portfolios become bloated with low-impact positions causing unnecessary drag and tax inefficiencies.
Customization is usually surface-level and requires significant manual work from advisors, making it difficult to scale true personalization across multiple clients.
How it works?
How Intelligent Indexing Works
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Comparison
Comparison of Investment Strategies
Features
Generic Model Portfolio
Direct Indexing
Portfolio Customization
Zero customization
More customization but limited to index replication
Tax Efficiency
Generally limited to in-fund tax efficiency
Can take advantage of tax-loss harvesting
Cost Efficiency
Cost Efficiency
Cost Efficiency
Value to Client
No value add, client could easily replicate
Delivers more value than model portfolios but limited in personalization
Offering Differentiation
Generic, does not differentiate the advisor
Provides greater sophistication, but growing common among advisories
Intelligent Indexing
Hyper-customizable, can convert ETFs into SMA portfolios, not limited to indexes
Tax-loss harvesting enables, also addresses portfolio drag and over-concentrations
An affordable and scalable high-value solution
Provides clients with an irreplaceable blend of personalization & sophistication
Highly differentiating offering, maximizes the advisor’s value-add with an exclusive offering
FINIAT Suite
Advisor Advantages
For advisors, FINIAT eliminates the complexity and tedious nature of portfolio customization and offers a scalable solution to address portfolio over-concentration, particularly when single-stock exposures dominate a client’s balance sheet. With automation driving both personalization and tax-smart efficiency, advisors can meet rising expectations at scale while focusing more on relationships and planning.
Advantages
A Better Client Experience
Tailored Portfolios, Aligned with Values and Goals.
For clients, Intelligent Indexing delivers portfolios that feel truly personal — aligned with their values, optimized for taxes, and free from unnecessary complexities.
As the Great Wealth Transfer accelerates, younger generations demand transparent customization and alignment with personal beliefs, while high-net-worth investors prioritize tax efficiency to preserve wealth across generations. Intelligent Indexing addresses both mandates.
Integrations
A Better Client Experience
Personalization. Efficiency. Clarity.
Intelligent Indexing works alongside Intelligent Allocation and AI Insights to deliver the only end-to-end platform designed to scale personalization, streamline advisor workflows, & strengthen client trust.
A Smarter Way Forward
FINIAT’s Intelligent Indexing transforms direct indexing from a rigid benchmark replica into a flexible, automated, client-first solution. It balances personalization, efficiency, and scalability giving advisors the tools to deliver better outcomes & stronger connections with every client.
FAQs
Frequently Asked Questions
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Direct indexing is an investment approach where an investor owns the individual stocks of an index directly, rather than holding a mutual fund or ETF that tracks the index. This provides more flexibility in customizing the portfolio while still maintaining broad market exposure.
Benefits often include greater tax efficiency through tax-loss harvesting, the ability to exclude or tilt toward certain securities, and enhanced personalization that aligns a portfolio with an investor’s values or financial goals.
Intelligent Indexing is FINIAT’s customizable direct indexing solution. It allows advisors to build highly personalized client portfolios at scale while leveraging automation to save time.
Intelligent Indexing expands on direct indexing with automated, quant-driven optimization that adjusts portfolios to market conditions while maintaining personalization and tax efficiency. Advisors get scalable customization, continuous oversight, and effortless management through FINIAT’s integrated platform.
Advisors can apply screens for ESG, values-based, and faith-based investing, as well as factor tilts and tax-aware overlays, creating portfolios that align with client preferences.
Intelligent Indexing is tax-efficient because it directly owns individual securities, allowing for precise tax-loss harvesting and control over realized gains. Its automated rebalancing captures losses and offsets gains throughout the year to help improve after-tax returns.
Yes. Our framework enables advisors to deliver personalization across hundreds of accounts without adding administrative burden.
The ideal client for Intelligent Indexing is an advisor or investor seeking personalized portfolios that go beyond static models. It’s best suited for those who value tax efficiency, customization, and data-driven optimization without adding complexity to their workflow.