Charles Schwab’s Insights & Ideas Podcast

The idea of making your portfolio your own typically involves adding and subtracting specific investments. The concept of "addition by subtraction" is a key component of an investment strategy that's been going mainstream lately. In this episode we look at one potential way you can subtract or add to your portfolio by using a method known as direct indexing. This strategy allows investors to own individual stocks that reflect the characteristics of the index they wish to track.The main advantages of direct indexing are personalization and tax-loss harvesting. But there are some downsides as well: tax-loss harvesting is only valuable if you have gains to offset and there is the operational burden of owning individual securities compared to index mutual funds and ETFs.  To discuss the ins and outs of direct indexing, Mark Riepe is joined by DJ Tierney. DJ is a director and senior investment portfolio strategist for Schwab Asset Management. He has over 25 years of experience in institutional sales, trading, and