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Altruist to Launch Its First Model Portfolio With Direct Indexing

By Jeff Berman

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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.

The Strategist suite uses DI for its U.S. large-cap stock allocation, basing its weights on the 500 largest U.S. stocks, Altruist said.

The portfolio will also be fielded in a tax-aware version it said was “designed with special consideration for the taxable investor.”

Advisors using Strategist will be able to “access a full support suite of methodology, analysis, and other collateral resources,” Altruist added.

“Advisors should have everything they need to provide their clients the best financial advice possible,” according to Jason Wenk, Altruist CEO and founder.

“As a partner to advisors, we believe in implementing solutions that help them stay ahead of the curve in all facets of their practice,” he said in a news release. “The Altruist Model Marketplace is one avenue to make that happen. Strategist will give advisors access to cutting-edge investment approaches that can significantly benefit their clients.”

Altruist’s model marketplace launched in early 2021 and has expanded since then. In addition to the new Strategist suite, the marketplace also features portfolios from brands including Redwood Investment Management and State Street Global Advisors and the Altruist Simplicity series, which is a free set of models, Altruist said.

The company will host a live online discussion about its model marketplace, Strategist and DI at 12:30 p.m. Eastern time on May 25.

 (Pictured: Altruist CEO Jason Wenk)

Jeff Berman

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