How Family Offices Are Using Direct Indexing for Tax Savings

Lucas and Luna explore how family offices are adopting direct indexing — owning the individual stocks in an index rather than buying an ETF — to harvest tax losses at scale. They walk through a specific case: a $50 million portfolio that generated $2.1 million in tax-loss harvesting benefits in a volatile first half of 2026. The conversation covers the technology behind direct indexing, why it has become more accessible, and the trade-offs — including tracking error and complexity. Lucas explains how managers use 'tax-loss harvesting' algorithms to sell losing positions and buy similar but not identical stocks to realize losses while staying invested. Luna questions whether the fees justify the benefits for smaller portfolios. The episode closes with a look at how this strategy is reshaping the traditional advisor-client relationship. #DirectIndexing #TaxLossHarvesting #FamilyOffice #WealthManagement #PortfolioManagement #TaxEfficiency #ETF #IndexFund #BenjaminFranklin #Fidelity #ParametricPortfolio #CustomIndexing #CapitalGains #TaxAlpha #GenerationalCapital #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo