Question 1

What is Custom Indexing?

Accepted Answer

Our Custom Indexing tool allows advisors to quickly build portfolios modeled after a selected Index ETF, and easily customize them to accommodate client investment goals. Unlike ETFs, clients own fractional shares of each component stock, so advisors can adjust weightings and exclude stocks or sectors in accordance with client needs…

Question 2

Am I eligible to use Custom Indexing?

Accepted Answer

Custom Indexing is available to Advisors only, and requires Fractional Share Trading to be enabled. Create a Custom Index portfolio model from the Advisor Setup tab.

Enable Fractional Trading in Client Portal. Use the link below to get there or log in manually and follow the directions. …

Question 3

How do I invest my clients in a Custom Index model?

Accepted Answer

To invest clients in a Customized Index model:

From the Classic TWS Portfolio page, use the selector to choose the account you want to invest.
Find and click Reallocate on the far right side of the page. …

Question 4

How do I set up Custom Rules for my Custom Index?

Accepted Answer

Customize your imported direct index using custom rules. From the Set Target Allocation window of your Customized Index, click the "Custom Rules" button to:

Set a cash target.
Exclude symbols…

Question 5

What happens if my custom rules apply multiple criteria to financial instruments?

Accepted Answer

When you create Custom Rules for a Custom Index model, please note the Custom Rules are stacked. This means that if the instrument meets multiple scaling criteria, the target% is multiplied across all of the scaling values. For example:

Assume the user defines Rule 1, that if the market cap is greater than $1 Trillion, scale by 1.1. The user defines Rule 2 that any instruments in the Tech Industry are scaled by 0.9. in this case, the Target % will be defined as:…