Direct indexing offers a powerful way for advisors, wealth managers, and platforms to deliver personalized investment experiences. When paired with MarketGrader’s equity research and index methodology, it becomes an even more compelling solution.

At the core of a successful direct indexing strategy lies the choice of benchmark. While most providers default to traditional indexes like the S&P 500 or MSCI benchmarks, MarketGrader offers a smarter alternative: a better starting point. Our broad-based, fundamentals-driven indexes are designed to harness the market’s beta while seeking to outperform it over time—powered by our globally consistent GARP + Quality methodology. This means investors don’t just replicate a market—they replicate the best companies in that market from day one.

Upgrading Quality Through Customization

One of the central promises of direct indexing is the ability to tailor portfolios through tax loss harvesting or other investor preferences. Yet, while much of the conversation focuses on what to sell and when, little attention is paid to what comes next: how to replace those securities without compromising portfolio quality or integrity.

That’s where MarketGrader makes a difference. Our transparent, rules-based ratings system enables portfolio managers and platforms to select higher-quality replacements that maintain the portfolio’s target exposure, helping to optimize long-term results. With MarketGrader, every sell decision becomes an opportunity to upgrade—not just rebalance.

Built to Plug In

MarketGrader does not operate a direct indexing platform—we don’t offer tax engines, personalization technology, or implementation tools. Instead, we serve as the IP layer inside. Our indexes and company-level ratings are built to integrate into third-party direct indexing platforms and model management tools, giving clients a unique and scalable foundation for delivering smarter, more differentiated portfolios.