Custom Indexing allows RIAs to create custom portfolios for their clients that directly hold the underlying securities of an index rather than purchasing a traditional index fund
May 02, 2023 10:00 AM Eastern Daylight Time–GREENWICH, Conn.–(BUSINESS WIRE)–Interactive Brokers (Nasdaq: IBKR) today announced the launch of Custom Indexing for Registered Investment Advisors (RIAs), a new direct indexing solution that enables RIAs to personalize client portfolios.
Custom Indexing allows RIAs to create custom portfolios for their clients that directly hold the underlying securities of an index rather than purchasing a traditional index fund. This approach provides several benefits, including the ability to customize portfolios to align with specific investment objectives, as well as include or exclude specific stocks based on ESG preferences and other factors. Unlike traditional ETF investing, Custom Indexing does not have an expense ratio and comes with low minimums, allowing RIAs to customize and personalize investing to their clients’ needs.
“IBKR’s comprehensive suite of advisor services, including no custody fees or minimums, advanced trading platforms, global market access and no in-house advisory team to compete with advisors, make us the ideal custodian for RIAs of all sizes,” said Milan Galik, Chief Executive Officer of Interactive Brokers. “Custom Indexing further enhances this package and enables advisors to create tailored portfolios aligned with their client’s specific investment goals.”
RIAs using Custom Indexing through Interactive Brokers will have access to a wide range of index options, including popular indices and ETFs such as the S&P 500 and the NASDAQ 100. They can fine-tune their portfolios by adjusting the weightings of individual securities within the index.
Custom Indexing through Interactive Brokers lets RIAs:
- Create and customize direct index models based on a curated list of ETFs
- Modify target weights or use custom rules that support user-defined and ESG-related exclusion lists
- Overweight or underweight stocks on a variety of financial metrics
In addition to Custom Indexing, Interactive Brokers offers a range of tools and resources to help RIAs manage their businesses, including portfolio analytics, performance reporting, and a robust trading platform. Features available on the IBKR RIA platform include:
- No ticket charges, no custodial fees, no minimums, and no technology, software, platform, or reporting fees
- No in-house advisory team to compete with advisors for clients
- Ability to trade stocks, options, futures, currencies, bonds, and funds on 150 markets from a single unified platform
- Specialized advisor tools, including trade allocation, tax-loss harvesting, model portfolios and many others
- Free CRM, portfolio management, and trading platform, plus PortfolioAnalyst®, which gives advisors the ability to consolidate and analyze a client’s entire portfolio, including assets held at other institutions
- Automated and flexible client billing
- Free website-building services
- Debit Card and Bill Pay functions available for US advisor clients
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. For the fifth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its March 25, 2022, Best Online Brokers Review.