Diversify Without the Tax Hit: Introducing Tax-Smart Portfolio Transitions

If your portfolio is heavily concentrated in a single stock, or just no longer reflects your goals, transitioning to something more diversified can feel overwhelming.

For many, the biggest friction point is taxes. Selling outright can trigger a large capital gains tax bill, creating a costly barrier to change.

That’s why we built Arta’s Tax-Smart Portfolio Transition (TSPT). It’s a strategy that helps you gradually reduce concentration risk while managing tax impacts along the way.

TSPT builds a custom direct index portfolio around your preferences, sells legacy positions over time, and harvests losses where possible to offset gains. You stay invested throughout the process, with full visibility into how your portfolio is evolving. There are also no lockups, so you can access your funds at any time.

We model multiple transition paths for you, showing estimated tax liability across different “tracking error” levels (how closely your destination portfolio tracks the market). That means you can choose the balance between diversification and tax impact that’s right for you.

For many people, their hard work and success in their careers has put them in a fortunate financial position, but also one that carries risk. We are pleased to be able to help people in this situation to chart a course forward that balances a range of objectives and meets their needs over the long term. Arta’s Tax-Smart Portfolio Transition is priced at 0.50% of assets under management annually. Please contact us at membership@artafinance.com to learn more.