What's so special about Direct Indexing? | Index One

In this edition of Index One Insights by Index One , we delve into why direct indexing is taking over investment portfolios, and the several benefits of direct indexing strategies.

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What's so special about Direct Indexing? | Index One

Direct indexing is not a new investment product; it originated from managed accounts which had roots in HNW wealth management and tax optimization.

The current boom of direct indexing is an illustration of the ongoing democratization of investment options for a broader spectrum of investors.

• Tax-loss harvesting: According to Cerulli, asset managers with direct indexing capabilities have stated that “they can comfortably harvest tens of thousands of dollars in losses per million dollars in the portfolio” on an annual basis, leading the researcher to believe that "taxes will continue to be the best and most widely used application of direct indexing strategies going forward." (via FA)

• ESG and values-based indexing: An investor who wants to invest in firms that share your environmental, social, and governance (ESG) ideals or a faith-based investor who is ethically opposed to “vice and sin stocks” would turn to financial advisors who offer direct indexing without losing sight of the benchmark that they have set for their investments.

• Retirement: Boomers are retiring in record numbers, while Gen-X and millennials are entering their prime earning years. Many financial advisors struggle to achieve portfolio income goals while still allowing an investor's portfolio to earn returns. Direct indexing could assist financial advisers in keeping their retiree customers involved in the market, specifically in a client's fixed-income holdings.

READ MORE: Here's why you should be direct indexing | Index One

WATCH: A Direct Indexing Ecosystem for Financial Advisors | Index One and BX Partners

“You, as an advisor, know what you’re trying to get done but not really know how to do it. We can match you with the right set of experts that can help you to create your own custom index.”

Watch now

Rewatch our previous webinar with BX Partners where we focused on direct indexing, contemporary investment strategies, an in-depth exploration of the various stakeholders within the ecosystem, and guidance on how clients can independently create their own indices.

VOTE: 3rd annual ESG Insight Awards 2024

We're thrilled to announce that Index One has been nominated for two categories at the prestigious 3rd annual ESG Insight Awards 2024!

Our nominations are in the following categories: ?? Best ESG Index Provider ?? Best Overall ESG Technology Provider

Click here to vote (thank you!)

We extend our heartfelt gratitude to all our clients, partners, and prospects for their unwavering support as we continue our mission to revolutionize indexing, making it fast, flexible, and fair.

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GRANOLA or Mag 7?

Goldman Sachs has coined a distinctive term, 'GRANOLAS,' to spotlight Europe's leading stock market players, drawing parallels to the famed 'Magnificent Seven' of the US market.

"These firms, with a towering combined market cap exceeding €2.6 trillion, have eclipsed the broader European stock market's performance in recent years." (via?euronews.business)

View the GRANOLA index here

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