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Smartleaf Core Portfolios

Low-Cost, Tax-Sensitive Separately Managed Accounts 

Smartleaf Core Portfolios (SCPs) are a family of automated tax-managed separate account products. 

Rather than owning a slice of a bundle of securities (i.e. mutual funds), separately managed accounts (SMAs) allow investors to directly own all the securities in the account. For this reason, SMAs are an alternative to mutual funds and ETFs that supports:

  • Tax-sensitive transition management
  • Ongoing tax management at the tax-lot level
  • Client-level customization

SCPs track a selected index (e.g S&P 500®) with a user-selectable number of holdings (70 stocks, 120 stocks, etc.). Owning these stocks directly, while passively tracking an index, is known as direct indexing

 


Benefits of a Core Portfolio SMA

 Tax Efficiency
Smartleaf Core Portfolios take advantage of tax-management strategies that are not possible with ETFs and index funds

 

 Lower Fees

Smartleaf Core Portfolios cost less than actively managed funds, actively managed models, and most index funds and ETFs

 

Smartleaf Core Portfolios offer customization options, such as security and social criteria restrictions, not available with ETFs and index funds.

 Use Cases

  1. Replace an active core manager at a lower cost
  2. Replace ETFs and Index Funds to improve customization and tax efficiency
  3. Improve transition of low-basis legacy holdings
  4. Create a tax-efficient core to offset gains from tax-inefficient vehicles like hedge funds

 

Product Fact Sheets

Smartleaf Core Portfolio - S70