Direct Indexing Channel

Most survey respondents (74%) also agree that direct indexing is an essential offering for high-net-worth/ultra-high-net-worth (HNW/UHNW) clients and prospects.

The Bitcoin ETF approvals opened the door. Now CoinDesk Indices is building the necessary infrastructure—regulated benchmarks, proprietary data from 300+ exchanges, and multi-token indices designed for advisors. Dave LaValle, President of CoinDesk Indices and Data, explains how the firm applies traditional finance standards to crypto markets, creating the equivalent of an S&P 500 for digital assets and enabling diversified exposure through familiar ETF structures.

Envestnet’s direct indexing solutions, powered by QRG Capital Management, blend deep customization, tax efficiency, and low fees to help advisors deliver truly personalized, scalable portfolios—across equities, fixed income, and factor-based strategies—in a single, unified platform.

The “lockup” narrative around direct indexing suggests tax benefits vanish after initial loss harvesting. Jerry Michael, President of Smartleaf, dismantles the myth by showing how direct indexes can deliver tax efficiency across every client milestone—from onboarding legacy positions to withdrawals, charitable giving, and rebalancing. The issue isn’t whether direct indexes work long term; it’s whether advisors understand tax management beyond loss harvesting alone.

Applying a tax management framework to smart beta or factor portfolios provides beneficial after-tax outcomes. Among the factor portfolios tested, a tax management framework generally resulted in a less desirable pre-tax portfolio but is compensated for on an after-tax basis.

Advisors can use custom SMAs to help their clients pursue a range of goals. Fidelity's guide will explore four common use cases, including diversification away from concentrated positions and even accumulating capital losses for a future taxable event.