The biggest hang up for most investors when it comes to direct indexing is the heavy minimum investment fees that usually accompany them. Fidelity shocked markets with their $5,000 minimum, but Altruist just lowballed them with a $2,000 product. This strategy used to be exclusively available to wealthy individuals but is now more accessible. Investors hold the underlying stocks that make up the indexing product which gives nice advantages when it comes to tax loss harvesting and green investing. The product will give investors exposure to global stock and bond markets as well as acap weighted 500 largest US stocks, and be available at a variety of risk levels.
Finsum: With the huge tax savings and lower investment minimums, direct indexing is more competitive with ETFs than it was even a year ago.
- direct indexing
- indexing
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