When buying a house, your real estate agent is key. They need to know your preferences and budget and other considerations so they can show you targeted properties that meet your requirements. Picking a direct index partner is a similar scenario.
Although its ubiquity and availability to all sorts of investors is a recent development, direct indexing has been around for many years albeit only for high-net-worth investors. In a recent SmartAsset interview of Vestmark’s SVP of Direct Indexing, Dave Gordon, he discussed what financial advisors need to know, and why wealth management firms are so bullish on the trend.
"Among wealth advisors, product and performance-oriented value propositions are in decline. This poses a fundamental challenge to the asset management industry," Jerry Michael notes. This will help reverse that trend and let advisors get back to work.
“These branded experiences underscore Schwab’s ability to meet the specific needs of our wealthier clients, but we are equally committed to ensuring that every client at Schwab receives a great experience, from those just getting started to those building wealth,” said Craig. “We are proud to offer a range of services and capabilities for investors at every stage of their investing journey with a focus on delivering low costs and great value, products and experiences that make investing easy and accessible, and exceptional client service.”
"We are delighted to offer investors the opportunity to access three thematic investment trends through efficient index-tracked solutions. The themes that underpin UPGR, CHPS and PSWD, we believe, hold immense potential for impact on the economy in both the near and long-term” said Arne Noack, Head Systematic Investment Solutions, Americas, at DWS Group. “It has long been our mission to offer investors innovative and diverse ETF solutions that not only enhance their core portfolio holdings but provide exposure to different segments of the global economy.”
All four ETFs are "fund of funds," and utilize a range of existing Avantis ETFs to build out multi-region and multi-asset class solutions. AVGV offers global equity exposure, while AVNM and AVNV offer exposure to non-U.S. developed and emerging markets. AVMA is designed to deliver a more balanced allocation, investing in both equity and fixed income ETFs.
Wondering whether adding Vanguard Personalized Indexing to your offerings could help you build your business? Listen in to hear how longtime direct indexing users Matt Shibata, managing partner of Morling Financial Advisors, and Dave Murdock, managing partner of Bordeaux Wealth Advisors, have been using the strategy to help improve outcomes for their clients.