Separately Managed Account (SMA)

A Separately Managed Account (SMA) is an individually managed investment portfolio where the client directly owns the underlying securities. Unlike a mutual fund or ETF — where investors own shares in a pooled vehicle — SMA investors hold individual stocks or bonds in their own accounts, enabling direct tax management, customization, and transparency. SMAs are typically available to clients with $100,000 or more in investable assets. For dividend income advisors, SMAs are especially valuable because the advisor can screen and manage individual dividend-paying stocks with full visibility into each holding's safety score, yield, and payout history — a level of control not possible in packaged fund vehicles.