Direct and custom indexing are all the rage right now and many companies are racing to provide lower fees and smaller minimums. The most advantageous part of direct indexing is its goldilocks solution when it comes to fees, but particularly the active/passive debate mashup. The most talked-about advantage to custom indexing is tax-loss harvesting in the portfolio, but there could be a larger advantage: sectoral macro factors. The Fed is quickly planning on hiking rates which will adversely affect technology stocks, with a custom index you can add/drop targeted sectors that are facing financial headwinds due to policy changes.
FINSUM: This is a nice way to leverage the tailored portfolio that you can get from custom indexing.
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