Unpicking Stocks Is The New Picking Stocks...Welcome To Direct Indexing

Track the performance of the S&P 500, but end up with more money from tax loss harvesting – for the same amount of effort and at a lower cost than robo-advisors. And the first three months are free. Seems too good to be true?

It’s called Frec Direct Indexing.

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Good Friday afternoon…

I wanted to dive a little deeper into the Frec.com direct index launch announced the launch a few days back.

I hate the idea of being ‘average’ but when it comes to investing in stocks, investing in the S&P index has been a hard average to beat. Average has been good if not great.

When I started spending less time following the stock market in 2006 to start Wallstrip, I still picked stocks and while I still pick stocks today, every year I have done less and less of it and chosen to index more and more ($QQQ over $SPY has been my mantra here) and for the most part that has been fine. Yes, I should have done less picking and more $QQQ.

My HUGE beef with indexing has been that investors are trying to do the right thing but rewarding many of the most evil corporations in history because of the market cap weighting of the $SPY. Every time you buy the S&P index, you buy all 500 stocks.

There is no simple way for the average investor that decides to index to tax efficiently ‘unpick’ a stock from an index.

For example…owning the S&P index less ‘Wells Fargo’, ‘Goldman Sachs’ etc…

Now with Frec.com any investor can.

Unpicking stocks is the new picking stocks!