Pooled market-cap index funds have become very popular as a way for small investors to easily gain exposure to a large number of stocks and bonds. While these funds can be suitable for most small investors, affluent investors are often left wanting more control, transparency, tax-efficiency, gifting ability, and cost control. With these shortfalls in mind, we set out to build a more efficient institutional earnings-focused index for affluent investors. In our years of research, the team at Linden Thomas & Co. found that market- cap index funds fell short of excellence in 9 ways: Market-Cap Requirements – often stocks are held in the fund based on their size, not their quality Pooled Ownership – investors don’t own the holdings directly Hidden Costs – the expense ratio is not the only cost Pass-Through Taxes – the sale of legacy holdings impacts investor taxes, even in down years No Control – no ability to do any kind of tax-loss harvesting or gifting of appreciated holdings No Transparency – investors often can’t see the individual holdings or cost-basis information No Ownership Privileges – fund shareholders have no