140/40 Russell 1000 on Frec

5Y historical harvest rate

49-57%

Based on historical simulations, a $100k investment may generate between $49k and $57k in losses over 5 years.

How it works

Long short direct indexing allows you to express a factor view, such as value or growth, while harvesting significantly more tax losses. We start with a core index and then layer on additional long and short positions to create a factor tilt. This structure allows you to express a market opinion while maintaining overall market exposure similar to the benchmark index.

Resources

14 min read•Jul 17, 2025

White paper: Long short direct indexing

9 min read•Oct 23, 2025

The long short direct indexing handbook

FAQs

Help center

White paper: Long short direct indexing

The long short direct indexing handbook

Can I get a margin call?

Can I invest in multiple indices while invested in a long short direct index?

Are there any trading restrictions?

Can I buy (go long) ETFs while using long short direct indexing?

Will trading ETFs cause wash sales with my long short direct index?

Can I use a portfolio line of credit while invested in a long short direct index strategy?

Can I transition out of a long short direct index?

Will my tax forms be complicated?