A link from Matt Levine's column. Essentially:
This sort of strategy/product seems to match what I've wanted to do for years: "The default is the index" and then tilt your "index"/portfolio. Or similarly build your own index, which could have default starting allocations.Those who appreciate the lower costs and simplicity of passive investing can make their own edits to a benchmark with an approach called direct indexing.
Eaton Vance Corp.’s Parametric Portfolio Associates, Optimal Asset Management and Ethic Inc. all offer direct index strategies.
The accounts can be used in various ways: an Apple Inc. staffer who already owns company stock via benefits could reduce further exposure in their portfolios, for example.
Customers also pay a larger upfront management fee for the personalization. Direct-index strategies typically charge about 0.15-0.35%, according to data from Bloomberg Intelligence. That’s less than an active mutual fund, but still at least five times more than some of the most popular, cheap equity ETFs.
Very often I am more bearish on particular companies, willing to bet: $COMPANY will do worse than $OTHER.
Where $OTHER could be competitors, sector, some fund/index it is part of, or the default (some stock market ETF).
How have you folks been handling this sort of thing already?
I never bothered learning the math/programming/or calculations for options (or pay for a product that does it for you) so just do occasional naked shorts at opportune times when I see something egregious, or for longer term bets I just tilt my portfolio manually by getting overweight into other ETFs that don't have the exposure. Less than ideal.