---
title: Beyond Direct Indexing
description: Leverage can boost tax-managed investing by extending a long-only direct indexing portfolio with long and short positions to improve efficiency and flexibility.
image: https://content.investmentsandwealth.org/hubfs/IWR-article4.png
---

[Skip to content](https://content.investmentsandwealth.org/publication/beyond-direct-indexing#main-content)

[![Investments & Wealth Institute ](https://content.investmentsandwealth.org/hubfs/content-hub/iwi_logo_w294_h46.svg "Investments & Wealth Institute ")](https://investmentsandwealth.org/)

 Explore

- [All Content](https://4812204.hs-sites.com/content-hub)
- [Video](https://4812204.hs-sites.com/content-hub?type=Video)
- [eBook](https://4812204.hs-sites.com/content-hub?type=eBook)
- [Case Study](https://4812204.hs-sites.com/content-hub?type=Case+Study)
- [Blog](https://4812204.hs-sites.com/content-hub?type=Blog)
- [Podcasts](https://4812204.hs-sites.com/content-hub?type=podcast)
- [Webinars](https://4812204.hs-sites.com/content-hub?type=webinar)

- [Find An Advisor](https://www.investmenthelp.org/)
- [Contact](https://investmentsandwealth.org/contact-us)
- [My Dashboard](https://portal.investmentsandwealth.org/s/login/?startURL=%2Fs%2Fhome-page)

- Certifications 
    - [CIMA](https://investmentsandwealth.org/certifications/cima-certification)
    - [CPWA](https://investmentsandwealth.org/certifications/cpwa-certification)
    - [RMA](https://investmentsandwealth.org/certifications/rma-certification)
    - [Help Me Choose](https://investmentsandwealth.org/certifications/compare-iwi-certifications)
- [Online Education](https://investmentsandwealth.org/online-learning-financial-advisor-ce)
- [Conferences & Events](https://investmentsandwealth.org/financial-advisor-conferences-events) 
    - [Experience 2026](https://experience.investmentsandwealth.org)
- [Membership](https://investmentsandwealth.org/membership)
- [Publications & Resources](https://content.investmentsandwealth.org/)
- [Partner Solutions](https://investmentsandwealth.org/partner-and-sponsor)
- [About](https://investmentsandwealth.org/about/mission-purpose-value)

Investments & Wealth Review - November/December 2025

# Beyond Direct Indexing

Truths and Myths of Loss Harvesting with Long/Short Extensions

Admin

This article explores the use of leverage in tax-managed investment strategies, specifically through long/short extensions applied to direct indexing portfolios. By expanding beyond long-only approaches, these strategies can increase the amount of tax losses harvested per dollar invested, potentially improving after-tax outcomes. They may be particularly relevant for investors who regularly realize capital gains, anticipate significant liquidity events, or seek to reduce concentrated positions without triggering immediate taxes.

Instant Access

## Read the Full Publication

Our Members receive new publications by mail and in the Membership Newsletter. For immediate access—or if you’re not a member—complete the form below.

## About Investments & Wealth Review

*Investments & Wealth Review* is a bimonthly magazine, written by award-winning authors from academic institutions and leading financial firms. Immerse yourself in current industry news and thought-provoking articles on the investment, legal, regulatory, business development, retirement, and wealth management topics that matter most to you and your clients.

[![white_logo_horizontal 1](https://content.investmentsandwealth.org/hubfs/Assets%20-%20LP/white_logo_horizontal%201.png)](https://content.investmentsandwealth.org/)

#### Get Certified

- [Compare Certifications](https://investmentsandwealth.org/certifications/compare-iwi-certifications)
- [CIMA Certification](https://investmentsandwealth.org/certifications/cima-certification)
- [CPWA Certification](https://investmentsandwealth.org/certifications/cpwa-certification)
- [RMA Certification](https://investmentsandwealth.org/certifications/rma-certification)

#### About us

- [About Us](https://investmentsandwealth.org/about)
- [Board of Directors](https://investmentsandwealth.org/about/governance)
- [Leadership Team](https://investmentsandwealth.org/about/leadership-team)
- [Newsroom](https://investmentsandwealth.org/advisor-publications/newsroom)
- [Careers](https://investmentsandwealth.org/institute-careers)
- [Privacy Policy](https://investmentsandwealth.org/privacy-policy)

#### Support

- [Contact Us](https://investmentsandwealth.org/contact-us)
- [File a Complaint](https://investmentsandwealth.org/about/governance/report-or-file-a-complaint)

 © Copyright 2026 by Investments & Wealth Institute

<https://www.youtube.com/c/InvestmentsWealthInstitute> <https://www.linkedin.com/company/investmentsandwealthinstitute/> <https://x.com/iw_inst> <https://www.facebook.com/investmentsandwealthinstitute/>

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Admin",
    "url" : "https://content.investmentsandwealth.org/publication/author/admin"
  },
  "dateModified" : "2026-04-06T19:32:55.611Z",
  "datePublished" : "2026-03-19T16:04:47.000Z",
  "headline" : "Beyond Direct Indexing",
  "image" : [ "https://content.investmentsandwealth.org/hubfs/IWR-article4.png" ],
  "mainEntityOfPage" : {
    "@id" : "https://content.investmentsandwealth.org/publication/beyond-direct-indexing",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://content.investmentsandwealth.org/hubfs/IWI%20Logos/IWI%20Logo%20Horizontal/180227_4C_LOGO_Horizontal.png"
    },
    "name" : "Investments & Wealth Institute"
  }
}
```