Defining Substitute Securities

Defining Substitute Securities

Firms using the SmartLeaf integration can define Substitute Securities for any Instrument they’ve created to assist in tax loss harvesting or legacy fund handling.

Note that Named Substitutes can only be designated for ETFs and Mutual Funds.

Note: Substitute Securities is a premium SmartLeaf integration feature. Contact AdvisorEngine Sales if you need to upgrade your integration subscription.

Defining Substitute Securities

Substitutes may be added when creating an Instrument or by editing an already-created Instrument.

  1. Navigate to Grow Practice > Customization > Instrument List.
  2. Begin creating a new Instrument or locate an existing Instrument and open it for editing.
  3. Near the bottom under Substitute Securities, click Add new.
  4. Search for and select the Symbol of the substitute.
  5. Set a Hurdle Rate (0-999bps) for the substitute. Zero is considered a 1 to 1 like of the existing instrument. The higher the Hurdle Rate, the less likely the substitute is to be recommended.
  6. If desired, select Do Not Buy. The substitute definition will only be used to allow an existing portfolio to hold the substitute, but never recommended as a replacement for the Instrument if it is already held.
  7. Repeat steps 3-6 if additional substitutes are needed.
  8. Adjust any other settings needed on the Instrument as a whole and click Create or Update to save your changes.

Note when building Models that Smartleaf does not support having multiple instruments with the same substitution.

For more details on how Named Substitutes function, see the full Smartleaf Named Substitute documentation.

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