RBC Wealth Management – U.S. enables customization of market tracking portfolios with direct indexing


Direct indexing portfolios managed by Envestnet and Parametric now available to RBC Wealth Management – U.S. clients in separately managed accounts


MINNEAPOLIS (Oct. 6, 2022) – RBC Wealth Management – U.S. announced today that direct indexing solutions provided by Envestnet and Parametric are now available on RBC Wealth Management’s separately managed accounts platforms. Solutions offered as separately managed accounts include Envestnet’s Market Series Quantitative Portfolios and Custom Core by Parametric.

Direct indexing seeks to provide similar performance as equity indexes while allowing for portfolio customization to suit investor preferences around tax management and responsible investing. The tax optimization and customization features of direct indexing offer advisors a way to differentiate their practices and can help improve client outcomes.

“As every client has unique financial objectives and preferences, demand for lower-cost, flexible solutions such as direct indexing has grown considerably,” said Kevin McDevitt, Director of Global Manager Research at RBC Wealth Management – U.S. “Envestnet and Parametric are among the leading players in the fast-growing direct indexing space and were selected as partners following an extensive review to identify compelling providers that could operate across our managed account platform.”

With direct indexing, clients can harvest losses on individual positions while deferring gains as long as possible, offering tax management flexibility unavailable in more traditional ETF and mutual fund index-tracking portfolios. In addition to the opportunity to achieve tax alpha, direct indexing allows for hyper-personalization of client portfolios. Certain stocks, sectors, or industries can be excluded to reduce concentration risk, as well as to incorporate environmental, social, and governance (ESG) considerations into an investment portfolio. Advisors can also match a client’s values with tax optimization to drive their charitable giving.

“We are excited to launch direct indexing capabilities at RBC Wealth Management as part of a broad range of solutions designed to help clients align their values with their financial goals,” McDevitt said.

Direct indexing strategies generally include a subset of the total stocks available within an index; therefore, investors should understand that there will be deviations in returns relative to the index. Performance deviations from the index will likely increase as investors implement a great amount of customizations and preferences.

About RBC Wealth Management – U.S.

In the United States, RBC Wealth Management operates as a registered investment adviser. RBC Wealth Management has $510 billion in total client assets with more than 2,100 financial advisors operating in 184 locations in 42 states. RBC Wealth Management, Envestnet, and Parametric are separate and unaffiliated firms. This release should not be construed as a recommendation or endorsement of any particular product, service, or firm.

Media Contact

Hannah Pederson, RBC Wealth Management, 612-371-2365, hannah.pederson@rbc.com