From Concentration to Clarity — Diversifying Stock Holdings with Faith-Based Direct Indexing

When you’ve built up a large position in a single stock, it’s often a sign of success. Maybe you’ve worked at the same company for years and received equity compensation. Maybe you invested early and saw tremendous growth.

But as your portfolio grows, so may your exposure. Holding too much in one stock may create financial, tax, and even spiritual tension.

How can you diversify wisely without triggering large taxes — and without compromising your values?

That’s where a faith-based direct indexing strategy may offer a thoughtful solution.

The Challenge of Concentrated Stock

It’s not uncommon for someone to hold 30, 40, even 60 percent of their investable assets in a single company. While this might feel familiar or comfortable, it may also bring hidden risk.

• Your future may be too closely tied to one company’s performance

• Selling all at once could create a significant tax burden

• You may feel uneasy if the company’s values no longer align with your own

These situations often raise both practical and spiritual questions — including how to move forward in a way that reflects faithful stewardship.

A Smarter Way Forward: Direct Indexing

Direct indexing offers a personalized approach to diversification. Instead of buying a mutual fund or ETF, you own the individual securities within an index — customized around your needs and convictions.

With a faith-based lens, direct indexing may allow you to:

• Screen out companies that conflict with Biblical values

• Gradually transition out of a concentrated position over time

• Harvest tax losses to offset gains, potentially lowering your tax bill

• Build a more resilient portfolio that reflects your long-term goals and beliefs

We believe that it’s a modern strategy grounded in timeless stewardship principles.

Faith and Flexibility Working Together

Many people delay diversifying because they’re unsure how to do it “right.” Faith-based direct indexing provides a way to move forward with both intention and integrity.

At Stonecrop, we believe that this approach may allow you to say, “I’m going to manage this wisely, reduce risk thoughtfully, and still reflect my values in how I invest.”

And it may work whether your concentrated holding came from a tech IPO, a decades-long career, or a well-timed investment.

Build a Portfolio That Reflects Your Values

At Stonecrop Wealth Advisors, we help clients move from uncertainty to clarity — from concentrated risk to diversified, faith-aligned portfolios. Our direct indexing strategies are tailored to both your financial reality and your spiritual convictions.

If you're ready to transition out of a concentrated stock position without compromising your values, reach out to us at info@stonecropadvisors.com. Let’s create a plan that brings peace, purpose, and lasting stewardship to your investment life.