Understanding high leverage long short direct indexing

​High leverage long short strategies are now available on Frec.

​You can now invest in 200/100 and 250/150 direct indices, designed to seek additional market exposure while potentially creating more opportunities for tax-loss harvesting. Historical simulations show a 250/150 direct index tilted toward quality can deliver 8.49% in after-tax excess returns and harvest up to 337% of your initial investment over 10 years*. Investors can choose either a Quality or Growth tilt. 

​In this session, Mo, CEO & Founder of Frec, and Hao Li, Head of Financial Engineering, will explain the mechanics of how long short direct indexing works, discuss potential tax benefits, and compare the available strategies with time for Q&A at the end.

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​*The 8.49% reflects our highest after-tax excess return found by investing in our 250/150 long short strategy with a Quality tilt. Results reflect the average of 41 ten-year simulations spanning the period from 04/01/2005-02/13/2025. The analysis assumes a 42.3% short-term tax rate and a 28.1% long-term tax rate, and includes annual fees and financing costs. You can view the historical results of our other strategies in our white paper here. Results are hypothetical and do not reflect actual investment results; they are not a guarantee of future results.