Report
Direct Indexing – A new tool for investors
This report explores direct indexing (DI), an emerging investment approach gaining popularity as investors seek greater flexibility beyond traditional exchange-traded funds (ETFs). While ETFs have seen rapid growth, surpassing USD 10 trillion in assets under management, they may not fully meet the diverse needs of all investors. Direct indexing allows investors to own individual securities that replicate the performance of a chosen index rather than investing through a pooled fund. This approach offers enhanced customization, tax optimization opportunities, and the ability to align portfolios with specific preferences, including ESG objectives and sector exclusions. Advances in technology, lower trading costs, and growing demand for personalized investment solutions have accelerated DI ado
