direct indexing

As is the case with any industry, Finance has evolved from technological improvements over the decades.   Direct Indexing is the next evolution in the investing landscape.  Also referred to as “the Great Unwrapping“, Direct Indexing is a technology that gives investors the ability to invest directly into indices without going through the ETF structure.  The technology enables investors (and advisors) to instantly create, execute in the market and manage any number of indices.  In the same way as an ETF baskets of stocks are bought and sold, but with the added benefits of:

  • Avoiding the potential liquidity “chokepoint” of the ETF structure.
  • The ability to tax-loss harvest individual positions (because all stocks are owned directly).
  • The ability to create and customize any exposure (as opposed to relying on an “off the shelf” ETF).