Altruist to Launch Its First Model Portfolio With Direct Indexing

What You Need to Know

The new Strategist Suite will be the second Altruist-generated model portfolio suite in its model marketplace and the first to include direct indexing.
The fintech firm’s DI offering will launch by the end of the quarter.
Altruist joins firms including Fidelity and Schwab in the direct indexing product market.

Altruist is the latest company to say it will offer a direct indexing product, announcing plans to launch the Altruist Strategist Suite by June 30.

The “all-in-one custodial solution for modern financial advisors” will be the second Altruist-generated model portfolio suite in its model marketplace and the first to include direct indexing, it said last week.

Advisors will be able to help retail investors access direct indexing with as little as $2,000, the company said, calling that a “radical entry point considering $250,000 is the typical industry minimum” for DI.

The new offering represents Altruist’s “commitment to making financial advice more accessible and affordable through its platform” and model marketplace advancements, it said.

Earlier this month, Charles Schwab launched Schwab Personalized Indexing, a new direct indexing solution with tax management and portfolio management capabilities, for registered investment advisors and retail investors. The investment minimum is $100,000.

Meanwhile, Fidelity recently launched Fidelity Managed FidFolios, a direct indexing product with a $5,000 minimum investment.

With direct indexing (or DI), advisors or investors buy the individual stocks that make up an index, adjusting their weights or eliminating some to align with investors’ preferences. The strategy also makes it easier for investors to harvest tax losses that can offset capital gains.

Strategist is Altruist’s “flagship portfolio suite, which will provide exposure to global stock and bond markets across a series of risk levels,” it said.