Get started with Vanguard Personalized Indexing

If you want improve investment outcomes for your clients—and grow your practice in the process—consider how Vanguard Personalized Indexing (VPI) could help. Our direct indexing strategy has a robust suite of features that set it apart from the competition:

1. Daily tax optimization

VPI can enable you to add real, after-tax value to your clients’ portfolios—at scale. Using advanced tax-loss harvesting technology, we can help you save time and potentially capture up to 1%–2% or more annually in after-tax alpha for your high-net-worth clients.¹

We do this by automatically scanning portfolios every day for tax-loss harvesting and rebalancing opportunities. For wealthy clients with realized capital gains of at least 3% to 4% of their taxable equity holdings per year, daily monitoring for tax-loss harvesting opportunities can make a meaningful difference—roughly doubling the amount of harvested losses they get¹ compared with less frequent scanning.

VPI can help you improve client outcomes in all kinds of markets. When the benchmark index is up, you can still harvest losses. And, thanks to daily tax optimization, you can harvest losses more aggressively  during periods of volatility.

2. Simple customization

Research shows that the vast majority of consumers today prefer customized experiences.² VPI could help you deliver the personalization clients expect and help your practice stand out in the process.

Use VPI to easily build direct indexing portfolios that reflect each client’s tax situation, preferences, and existing positions—all with just a few clicks of a button. You’ll gain the flexibility to:

• Diversify concentrated portfolios.
• Build portfolios around legacy positions.
• Apply ESG screens and tilts and factor tilts.
• Exclude or include specific industries, sectors, or individual securities.

3. White-glove customer support

Our dedicated support team is here to assist you across the entire VPI experience, from account set-up to solutions for more complex direct indexing questions. We can help you with:

• Onboarding support and help with initial investment of new client accounts.
• Ongoing trading and management of your clients’ VPI portfolios.
• Back-office support for billing, contracting, and custodian account management.

You’ll also enjoy:

• Thought leadership materials.
• Targeted direct indexing training.
• Help preparing for client discussions.

4. On-demand reporting

VPI also makes it easy for you to monitor key portfolio metrics. It only takes a few moments to generate easy-to-understand reports that show clients the impact you’re making.

Choose from pre- and post-tax performance reports, ESG impact reports, and detailed transition analyses that help you evaluate the potential tax cost of several possible scenarios. We make sure you have the information you need to choose the investing options that work best for your clients. 

Show your value

5. A trusted brand

By choosing VPI, you’re leveraging nearly 50 years of investing expertise from one of the most trusted financial companies in the world.² When you’re introducing direct indexing to potential investors, Vanguard’s reputation can help put your ultra-high-net-worth and tax-sensitive clients at ease. For the right investors, VPI can be a key lever to help you save time improving as you strive to improve client outcomes.

See how VPI can work for you

Ready to give Vanguard Personalized Indexing a try? Call your sales representative at 800-997-2798 to learn how simple it is to get started.
 

1 Kevin Khang, Alan Cummings, Thomas Paradise, and Brennan O’Connor, 2022. Personalized indexing: A portfolio construction plan. Valley Forge, Pa.: The Vanguard Group. Simulation as of September 2021.

2 Forbes: 2024 State of Customer Service and CX Study.

Notes

• Vanguard Personalized Indexing Management, LLC (“Vanguard Personalized Indexing Management”), formerly Just Invest, LLC, an SEC-registered investment advisor, is an independently operated wholly-owned subsidiary of The Vanguard Group, Inc. (“Vanguard”). Vanguard Personalized Indexing is an asset management technology that has been developed and is offered solely by Vanguard Personalized Indexing Management.
• For more information on Vanguard Personalized Indexing Management and Vanguard Personalized Indexing, and to access Vanguard Personalized Indexing Management’s Form CRS and Form ADV Part 2A disclosure brochure, please visit the Vanguard Personalized Indexing topic page . 
• All investing is subject to risk, including possible loss of principal. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss.
• Tax-loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications.  Prospective investors should consult with their tax or legal advisor prior to engaging in any tax-loss harvesting strategy.  Neither Vanguard Personalized Indexing Management nor Vanguard provide tax or legal advice.
• The material contained in this document is for information purposes only. This material is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument, nor is it advice or a recommendation to enter into any transaction. The information contained herein may be opinions, which are subject to change, at any time, and should not be construed as financial or investment advice on any subject matter.
• The information contained herein does not constitute tax advice and cannot be used by any person to avoid tax penalties that may be imposed under the Internal Revenue Code. Each person should consult an independent tax advisor about their individual situation before investing in any security.
• Factor investing is subject to investment style risk, which is the chance that returns from the types of stocks selected will trail returns from U.S. stock markets. Factor investing is subject to the risk that poor security selection will cause underperformance relative to benchmarks or funds with a similar investment objective.
• ESG portfolios are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the data provider for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other portfolios screened for ESG criteria. The data provider’s assessment of a company, based on the company’s level of involvement in a particular industry or the data provider’s own ESG criteria, may differ from that of other portfolios or of the advisor’s or an investor’s assessment of such company. As a result, the companies deemed eligible by the data provider may not reflect the beliefs and values of any particular investor and certain screens may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the customized investment strategy will depend on the data provider’s proper identification and analysis of ESG data.
• All performance results have been compiled by VPIM and have not been independently verified.
• Index performance does not reflect the deduction of expenses but does reflect reinvestment of dividends, capital gains, or interest.
• Indexes are unmanaged, therefore direct investment is not possible.