A disciplined investment process to provide full exposure to a desired allocation or benchmark while generating tax alpha through customized SMA portfolios of ETFs.
Identify optimal ETFs for each exposure.
Construct customized portfolio of ETFs to target desired allocation or benchmark.
Determine optimum ETF tax benefit capture trading thresholds.
Monitor every ETF in each account throughout the trading day for opportunities to capture tax benefits.
Harvest. When a loss capture opportunity occurs, we “swap” (sell the ETF to capture a realized loss and simultaneously purchase a similar ETF) using our optimized trading process to maintain desired exposure.
Three ways our investment process delivers tax benefits:
- In the construction of core index plus portfolios, we use only low-cost, passive ETFs, which are inherently more tax efficient than most mutual funds.
- Our SmartCapture process can generate realized losses to neutralize capital gains that may be realized within the Green Harvest portfolio.
- Any excess realized losses may be used to offset any realized gains outside the Green Harvest portfolio.