Why Direct Indexing is the New Killer App for Advisors

Michael Batnick says he knew from the start that direct indexing was going to transform his firm, New York City-based Ritholtz Wealth Management, where he is director of research. When CEO Josh Brown “and I saw this, I said to him, ‘The next billion dollars that we raise is going to be in this thing.’ ” Ritholtz rolled out direct indexing in late 2019, and now has 15% of its nearly $2 billion of client assets in direct-indexed versions of its investment strategies, Batnick says. Most of the new dollars coming into taxable accounts are being steered there as well.

Our firm was prominently featured in Barron’s this weekend discussing how and why advisors are using direct indexing strategies to enhance their wealth management services for clients. We began in 2019 as part of Patrick O’Shaugnessy’s pilot program and now it’s become a very important part of how we manage money. There are tax management benefits, customization benefits, ESG benefits and the ability to do things for diversification that you simply cannot do with ETFs.

You can read the whole story at the link below:

Why Advisors Are Adopting Direct Indexing Now (Barron’s)

Talk to us about your financial plan and portfolio today. Certified Financial Planners are standing by to talk to you.

You can also listen to Patrick and I discuss direct (custom) indexing and his platform, Canvas, here.