Traditionally, the only way most people could replicate the performance of a stock market index, such as the S&P 500, was to invest in a mutual fund or exchange-traded fund (ETF). However, technological advances and fractional share trading have made it easier and much less costly to invest directly in the individual stocks that make up an index. This allows your investments to be tailored to your needs and requirements while capitalizing on strategies that can help you lower your taxes, such as tax loss harvesting. Direct indexing also allows you to use value-based investing, which buys more stock in industries you want to support, and avoids investing in industries that don't align with your values.

Please note that direct indexing is only available when using a Premium portfolio. There's no extra fee for using a Premium portfolio, but they are only available for Joint Goals.

For Plenty's disclosures on tax loss harvesting and wash sales, please see Plenty's general disclosures here.