Vanguard has agreed to acquire Just Invest, a California-based asset manager whose software allows investors to create their own indexes, writes Erin Arvedlund for The Philadelphia Inquirer.

The company expects to finalize the acquisition before the end of the year. It did not disclose the financial terms.

Just Invest initially launched its direct indexing software for financial planners. But the Malvern-based investment giant could roll out this offering to its retail clients.

The products Just Invest offers are part of growing industry offerings that help clients mimic the holdings of a popular fund or adjust it to better align with their personal preferences. Through Just Invest capabilities, for example, a private investor could choose to avoid oil companies or other such firms that run counter to their personal beliefs.

“Technology-driven solutions such as direct indexing continue to reshape our industry, driving better investment outcomes and lowering costs for clients,” said Vanguard CEO Tim Buckley.

Instead of monthly or quarterly, Just Invest’s programs — including Kaleidoscope — provide daily post-tax performance and tax impacts. This information provides financial advisors with more transparency for direct indexing tax benefits.

“With Vanguard’s tremendous brand, reach, and investment leadership, we will be able to help even more advisors drive better investment outcomes for their clients,” said Jonathan Hudacko, CEO of Just Invest.

Read more about Vanguard in The Philadelphia Inquirer.