Wealth Management Investing Trends: Direct Indexing

The traditional wealth management asset allocation model, previously limited to equities and bonds, is being upended due to investor demands for new products and strategies, including direct indexing, cryptocurrencies, and access to alternative investments such as hedge funds and private equity. It’s important for wealth managers to educate themselves on these new investment products and strategies to understand how they will impact not only their business but also client portfolios.

This whitepaper tackles one such strategy — direct indexing — and explores the following:

• What it is and how it works
• What is driving its current popularity with clients across the board
• The positive and negative implications for wealth managers
• Optimal use cases for direct indexing