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Topics: Direct Index Account
Direct Index Account
A Trading Account allows you to choose from our catalog of professional and community-built motif portfolios, build your own custom 30-stock portfolios, trade individual stocks, and participate in IPOs or Market-Linked CDs.
A Direct Index account allows you to invest in a single portfolio that tracks a broad market index. A direct index portfolio may have more than 500 stocks (e.g. Motif 500) that you can customize and automate.
With an Impact Account, you get a fully-automated portfolio that aligns to your financial goals with your values. The Impact Portfolio has stocks and ETFs in seven asset classes providing exposure to US and international equity and bond markets.
A separate account for direct index portfolios is required so that we can offer the optimal experience while seamlessly processing hundreds of trades within seconds. It allows for:
Opening another account at Motif is simple and is at no cost to you.
Motif 500 Portfolio Tilts are investment strategies that include certain stocks from the Motif 500 to overweight a particular investment style. You can choose among four tilts: Value, Momentum, Low Volatility, or Sustainability to bring factor-based or value-based investing into your portfolio.
Learn more from our blog: Factor-based investing for everyone
Buying the Motif 500 portfolio without customization has no commissions or licensing fees. If you choose a different strategy (e.g. Momentum) or customize the Motif 500 portfolio, a 0.15% licensing fee will apply.
The Motif 500 index is designed to measure the market performance of U.S. stocks trading on U.S. exchanges. The index captures the performance of the top 500 large-cap companies and is weighted by a float-adjusted market cap. The number of stocks can vary based on the share classes available of the underlying companies at any given time.
Portfolio tilts are investment strategies that include certain stocks from the Motif 500 to overweight a particular investment style.
Direct Index accounts currently have a minimum initial investment of $10,000 so that you can buy enough shares of stocks in your direct index portfolio. This minimum balance must be maintained over the lifetime of the account.
Customizing allows you to add, remove, or change the weighting of any stock or sector in the index.
You may customize your Direct Index portfolio at any time:
If you have any questions concerning customization of a Direct Index portfolio, please contact Customer Service at email@example.com, or 1-855-586-6843 call 9am-6pm ET, Monday through Friday.
Please note that customizing your direct index portfolio carries a licensing fee of 0.15%, expressed as an annual fee rate. This fee is based on the amount of invested assets and will be deducted from your account balance on a monthly basis. For further information, please see the Fees and Commissions page.
When placing a trade in Direct Index and Impact accounts, our platform converts the investment dollar amount into an exact share count to be sent for trade execution. To ensure that the amount invested does not exceed your available funds, we require a 2% cash reserve to account for market price fluctuations when the trades are executed at market open.
For Trading accounts, we reserve 2% for real-time trades placed and executed during market hours and 5% if the trades are pending execution at the next market open.
Auto-Invest Cash controls whether your cash balance is automatically invested into your direct index portfolio. With it enabled, your cash will be automatically invested at the next market open when its balance exceeds $250. With it disabled, your cash will not be automatically invested, but you may make buy or sell trades of the direct index portfolio or of its individual holdings.
If the dividend is in cash, the money will be credited toward your cash balance. Your cash balance will be automatically reinvested into your Direct Index portfolio when it exceeds $250 and Auto-Invest Cash is enabled.
Yes. You can place trades in your direct index account by simply disabling “Auto-Invest Cash” from your Dashboard or Positions page. This will allow you to buy or sell the direct index portfolio or any of its individual holdings. Keep in mind that cash proceeds from sells will remain as cash if “Auto-Invest Cash” remains disabled.
If you wish to trade securities such as individual motifs, single stocks or ETFs, IPOs, or MLCDs, you can do so by opening a traditional trading account. If you have questions, please contact Customer Service at firstname.lastname@example.org, or 1-855-586-6843 call 9am-6pm ET, Monday through Friday.
All trades in a direct index account are executed as market orders when the market opens on the next trading day (9:30am ET).
You can place trades in your direct index account by simply disabling “Auto-Invest Cash” from your Dashboard or Positions page. This will allow you to buy or sell the direct index portfolio or any of its individual holdings. Keep in mind that cash proceeds from sells will remain as cash if “Auto-Invest Cash” remains disabled.
We will be releasing new features soon! We’re working hard to add easier customization, packaged portfolio screens, and tax-loss harvesting.