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Interactive Brokers launches custom indexing for Registered Investment Advisors

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Interactive Brokers has launched a custom indexing service for Registered Investment Advisors (RIAs) in the US, described as ‘a new direct indexing solution that enables RIAs to personalise client portfolios’.

The firm writes that 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 customise 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 customise and personalise investing to their clients’ needs,” the firm says.

“IBKR’s comprehensive suite of adviser services, including no custody fees or minimums, advanced trading platforms, global market access and no in-house advisory team to compete with advisers, make us the ideal custodian for RIAs of all sizes,” says 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, the firm says, including popular indices and ETFs such as the S&P 500 and the NASDAQ 100, adding that they can fine-tune their portfolios by adjusting the weightings of individual securities within the index.

The firm writes that custom indexing through Interactive Brokers lets RIAs:

Create and customise 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 writes that it 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 advisers for clients

Ability to trade stocks, options, futures, currencies, bonds, and funds on 150 markets from a single unified platform

Specialised adviser tools, including trade allocation, tax-loss harvesting, model portfolios and many others

Free CRM, portfolio management, and trading platform, plus PortfolioAnalyst, which gives advisers the ability to consolidate and analyse 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 adviser clients

The firm writes that 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 customise 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 customise and personalise investing to their clients’ needs,” the firm says.

“IBKR’s comprehensive suite of adviser services, including no custody fees or minimums, advanced trading platforms, global market access and no in-house advisory team to compete with advisers, make us the ideal custodian for RIAs of all sizes,” says 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, the firm says, including popular indices and ETFs such as the S&P 500 and the NASDAQ 100, adding that they can fine-tune their portfolios by adjusting the weightings of individual securities within the index.

The firm writes that custom indexing through Interactive Brokers lets RIAs:

Create and customise 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 writes that it 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 advisers for clients

Ability to trade stocks, options, futures, currencies, bonds, and funds on 150 markets from a single unified platform

Specialised adviser tools, including trade allocation, tax-loss harvesting, model portfolios and many others

Free CRM, portfolio management, and trading platform, plus PortfolioAnalyst, which gives advisers the ability to consolidate and analyse 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 adviser clients

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