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Direct Index Lab

Custom index replication with tax-loss harvesting and tracking error optimization

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Enterprise Feature

This feature is available on the Enterprise plan. The documentation below describes its full capabilities so you can evaluate whether it fits your workflow. Contact us to learn more about upgrading your access.

Overview

Direct Index Lab enables custom index replication where you own the individual constituent stocks instead of an ETF. This approach enables tax-loss harvesting at the individual stock level, custom exclusions, and tracking error optimization. It is designed for sophisticated portfolio management with tax-aware rebalancing.

Tabs

Overview

Dashboard showing the direct index portfolio summary, tracking error vs benchmark, tax alpha generated, and key statistics.

  • -Portfolio value and benchmark comparison
  • -Tracking error metric (annualized)
  • -Tax alpha: estimated tax savings from harvesting
  • -Rebalance status and next rebalance date
Holdings

Complete list of individual stock positions in the direct index portfolio with weights, cost basis, and unrealized gain/loss.

  • -Position list with target vs actual weight
  • -Cost basis and unrealized gain/loss per position
  • -Tax lot detail (for harvesting analysis)
  • -Drift from target allocation
Harvest

Tax-loss harvesting analysis showing positions with unrealized losses eligible for harvesting, replacement candidates, and projected tax savings.

  • -Harvesting candidates ranked by tax benefit
  • -Replacement stock suggestions (similar factor exposure)
  • -Wash sale rule compliance tracking
  • -Projected tax savings calculation
History

Historical transaction log and harvest event history.

Performance

Performance attribution and tracking analysis relative to the benchmark index.

  • -Cumulative return vs benchmark chart
  • -Tracking error time series
  • -Attribution by sector and factor
  • -Risk metrics (volatility, Sharpe, max drawdown)
Research

Advanced research tools including tax scenario modeling, tracking error analysis, stock replacement research, and transition planning.

  • -Tax Scenarios: Model different harvesting strategies and their tax impact
  • -Tracking Error: Analyze sources of tracking error and optimization
  • -Replacement: Research substitute stocks maintaining factor exposure
  • -Transition Plan: Plan portfolio transitions with tax-aware sequencing
Settings

Configuration for the direct index including benchmark selection, tracking error tolerance, harvesting thresholds, and rebalance parameters.

How to Use

  • ●Configure your benchmark index and tracking error tolerance in Settings
  • ●Review the Overview tab for portfolio health and tracking status
  • ●Monitor Holdings for drift from target allocation
  • ●Check the Harvest tab regularly for tax-loss harvesting opportunities
  • ●Use Research tools for scenario analysis and optimization
  • ●Review Performance to ensure tracking remains within tolerance

This platform provides data and analysis tools for educational and informational purposes only. Nothing on this platform constitutes financial advice, investment recommendations, or solicitation to buy or sell any securities. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.