3 Factor Indexing, LLC

3 Factor Indexing provides investment management to individuals, families, trusts, and closely held businesses, managing approximately $193 million for 48 clients through a two-advisor team. Services center on portfolio construction and discretionary management, with portfolios built around clients’ financial plans, age, time horizon, risk tolerance and investable assets.

The firm’s investment approach is grounded in modern portfolio theory, emphasizing asset allocation and broad diversification implemented primarily with exchange-traded products, mutual funds, separately managed accounts, equities and bonds; fundamental analysis is used when packaged products are not appropriate. 3 Factor typically manages accounts on a discretionary basis, performs at least annual reviews, allows clients to request security restrictions (subject to termination if those restrictions impede proper servicing), and may recommend third-party managers for specialized mandates.

Compared with many peers, 3 Factor’s client roster contains no non–high-net-worth individual clients, resulting in a relatively small number of households with substantial assets per household managed by a compact advisory team. The brochure also discloses that the firm may refer clients to private-equity or option-hedging providers while acknowledging it has no expertise in those areas, receives institutional research and brokerage services from its custodian, does not accept proxy-voting authority, and does not take custody of client funds.