How Direct Indexing Portfolios Are Customized
Discover how Allspring's direct indexing separately managed accounts (SMAs) can be tailored through security exclusions, faith-based screens, index blending, and dividend tilts.
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8/19/2026
14 min read
Topic
Direct Indexing
Key takeaways
- Direct indexing seeks to track the performance of a chosen index by owning individual securities in a SMA.
- Unlike funds, direct indexing allows an investor to directly own the securities, which allows for more customization options.
- Investors can personalize eligible strategies with values-based screens, specific exclusions, index blends, and dividend-focused options.
Executive Summary
Build a portfolio around your preferences
Direct indexing allows investors to customize eligible portfolios in ways that may not be available through traditional investment products. Depending on the strategy, investors can exclude specific securities or industries, incorporate faith-based screens, blend multiple indexes within a single portfolio, or pursue a dividend-tilt approach focused on higher-yielding companies. These customization options may help create a portfolio that better reflects an investor's priorities while maintaining broad market exposure.
Explore Allspring’s customization options
The table below highlights the customization features available across Allspring's direct indexing SMA lineup.
| EQUITY CUSTOMIZATION OPTIONS | |||||
| SMA STRATEGY NAME | PROFILE | SECURITY/INDUSTRY | FAITH-BASED | BLEND ELIGIBLE* | DIVIDEND-TILT |
| SMArt Large Core 500 | Large core | • | • | • | • |
| SMArt Large Core 500 ESG- Screened |
ESG-screened large core | • | • | • | |
| SMArt Large Blend 1000 | Large blend | • | • | • | |
| SMArt Large Growth 1000 | Large growth | • | • | • | |
| SMArt Large Value 1000 | Large value | • | • | • | |
| SMArt All Cap 3000 | All cap | • | • | • | • |
| SMArt International Core | Developed non-U.S. ADR | • | • | • | |
| SMArt Emerging Markets | Emerging markets ADR | • | • | • | |
*Note: Not all customization options for direct indexing strategies may be available at all firms. Please contact your financial advisor to learn more. Index blends are available that combine Large Core 500 or All Cap 3000 indexes, with one or both of International Core and Emerging Markets indexes. Starting minimum weight is 10% in any index and weight customizations must be in increments of 5% thereafter.
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