We Know Wealth Advisor Readers Have Embraced Direct Indexing, But How Are You Using It?

I've got to say that if there's a backlash against direct indexing, it doesn't show up among the advisors who read The Wealth Advisor and responded to our latest poll. 

Now we'd like to dig a little deeper. There's a popup at the bottom of this window that asks you to identify your relationship to direct indexing . . . where you sit in the industry. It's as easy as it gets. One question.

It's important because it turns out that direct indexing is getting a lot of traction. But our audience is big and diverse.

Do traditional broker-dealer reps actually have the upper hand when it comes to buying and selling stocks as opposed to fund wrap accounts? Are the wirehouses already here? Can a fee-only RIA embrace the SMA?

Please click the box that applies to you. And now back to the results of the last survey because they're interesting. Everybody needs more real-world benchmarking to cut through the hype on all sides.

We asked how you specifically see direct index approaches to wealth management adding value to the advisory landscape. Several hundred of you responded.

The overwhelming majority picked at least one use case that adds value in a direct index portfolio environment compared to conventional ETF packaged funds. Sure, the right ETF is quick, practically cost-free and portable. I get it.

But so are stocks in a world where transaction costs have cratered. And in that world, the world in which we're living, advisors need to be able to add value in order to stay relevant. 

That value comes from tax sensitivity. It comes from being able to offer meaningful screening to investors who care. And in the long haul, the value can compound.

Not even 1 in 20 of the people who responded say there's no future in direct indexing. This is here. It's actually been here for decades. The only question is whether you see it as a challenge or an opportunity.

Click that popup question please.



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