Scalability

Scalability is an evaluation by Russell of how well the activity can be leveraged for use with multiple or all investor clients. The rating is the equal-weighted-average of subjective ratings of three sub-variables that contribute to scalability. These include "automation potential", "customization requirement," & "cost effectiveness".

Automation potential Customization requirement Cost effectiveness Relative Scalability (average of sub-metrics)
Harvest losses 1 1 2 1.3
Pay attention to holding period 3 3 2 2.7
Manage portfolio yield 3 4 5 4.0
Select tax lots 1 1 1 1.0
Reduce turnover 5 3 5 4.3
Defer realized gains 2 1 2 1.7
Eliminate wash sales 4 1 1 2.0

Automation potential
How much potential is there to automate this activity?
5 = a lot | 3 = some | 1 = very little

Degree of customization
How much customization does this activity require for each individual client? (Note: individual suitability considerations may affect the activity)
5 = low | 3 = medium | 1 = high

Cost effectiveness
Could this activity be scaled in a low-cost manner?
5 = yes | 3 = maybe | 1 = no