• Cost efficiently track S&P Dow Jones indices (other index providers available on request) and combine, adapt or otherwise customize indices as needed
  • Deploy Optimal’s proprietary factor based, tax-optimized SMA solutions that seek to outperform and reduce risk at low cost.

Why Direct Indexing?

Advances in broker-dealer technology enable investors to expand their investment arsenal beyond traditional “pooled investment” structures such as ETFs, ETNs or Mutual Funds. Instead of ownership through a pooled intermediary, the investor directly holds the underlying securities that make up the index. The securities are held in a Separately Managed Account by which the investor retains exclusive ownership and control over the assets. Since ownership is not pooled and there are no intermediaries, the holdings can be customized to meet individual preferences or requirements.

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Why Factors?

Decades of academic research overwhelmingly suggest that the variations we observe in portfolio returns are driven by a relatively small number of factors. Optimal builds equity factor portfolios designed to provide systematic, risk-mitigated exposure to academically vetted factor premia, specifically the Market as well as Low-Vol, Momentum, Quality, Size and Value factors.

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We have been doing this for large institutions since 2013 …


Billion in assets under advisement


million Discretionary AUM