QRG Quantitative Portfolios (QPs) are a suite of asset class-specific
investments that blend the potential benefits of "beta" investing with the
portfolio customization of direct indexing. Three varieties of QPs can help
improve after-tax and risk-adjusted results – in a cost-effective manner:
Market-cap weighted portfolios that track
traditional indexes and provide cost-efficient
beta exposureafter-tax and risk-adjusted
results-in a cost-effective manner
Market Series
Portfolios tilted to factor exposures that
increase the potential for improved risk-adjusted
returns
Factor-Enhanced Series
Portfolios that track traditional indexes with an
explicit focus on companies with high
sustainability and social ratings
Impact Series
This personalized indexing can incorporate tax-loss harvesting,
sustainability goals, factor tilts, and even help manage concentrated
stock positions. Direct indexing can also be used to potentially
outperform the benchmark by capturing and highlighting various asset
pricing factors. What are factors exactly? Think of factors as sources of
return that can be isolated through quantitative analysis. Some of the
most well-known investment factors are Value, Momentum, Low Volatility,
Quality, and Size.
These factors have been found—through decades of academic and
industry research—to drive returns that were previously thought to be
idiosyncratic, and this research has led to the creation of portfolios that
emphasize one or more factors. Direct indexing provides
a route to implement factor-oriented strategies because
the portfolio can be tailored as much as desired. For example, the S&P
500's constituents could be evaluated from a factor perspective, and a
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