{"id":196476,"date":"2023-09-20T10:45:00","date_gmt":"2023-09-20T14:45:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=196476"},"modified":"2023-09-20T12:25:29","modified_gmt":"2023-09-20T16:25:29","slug":"direct-indexing-how-it-works-and-whether-it-is-worth-it-for-investors","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/contributor-podcasts\/direct-indexing-how-it-works-and-whether-it-is-worth-it-for-investors\/","title":{"rendered":"Direct Indexing | How it Works and Whether It Is Worth It for Investors"},"content":{"rendered":"\n<p>Many believe that direct indexing will be the next big trend in investing. While it used to be reserved for high-net-worth individuals, zero commissions and the ability to trade partial shares has now brought it to the masses. But does it make sense for investors to utilize the strategy? As is usually the case with all investing tools, the answer is \u201cit depends\u201d. In this episode, Lee Boudouris of Sunpointe Investment joins us to look at how direct indexing strategies work and the pros and the cons of the approach.<\/p>\n\n\n\n<p><a href=\"https:\/\/open.spotify.com\/episode\/5C82tjWwfeGrgEW15tC6PY\">Listen on Spotify<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/a-detailed-look-at-direct-indexing\/id1670513515?i=1000628248144\">Listen on Apple Podcasts<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=192s\">03:12<\/a> &#8211; What is direct indexing? <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=298s\">04:58<\/a> &#8211; The types of investors direct indexing works best for <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=502s\">08:22<\/a> &#8211; The factors that determine whether a direct indexing approach is appropriate <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=669s\">11:09<\/a> &#8211; The costs of direct indexing strategies relative to index ETFS <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=755s\">12:35<\/a> &#8211; The importance of the path of returns <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=839s\">13:59<\/a> &#8211; Do direct indexing portfolios overweight large companies relative to index ETFs? <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=1050s\">17:30<\/a> &#8211; How direct indexing portfolios handle index changes <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=1201s\">20:01<\/a> &#8211; ESG, factors and direct indexing <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=1442s\">24:02<\/a> &#8211; Is there a behavioral advantage to direct indexing? <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=1707s\">28:27<\/a> &#8211; How direct indexing portfolios limit tracking error while selling losing positions <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=2051s\">34:11<\/a> &#8211; Direct indexing and gifting strategies<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=2239s\">37:19<\/a> &#8211; Five (or six) things to look for in a direct indexing manager <\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=tamAYsK7hUE&amp;t=2648s\">44:08<\/a> &#8211; Jack needs a collared shirt<\/li>\n<\/ul>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted September 20, 2023 &#8211; <a href=\"https:\/\/blog.validea.com\/direct-indexing-how-it-works-and-whether-it-is-worth-it-for-investors\/\">Direct Indexing | How it Works and Whether It Is Worth It for Investors<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many believe that direct indexing will be the next big trend in investing.  But does it make sense for investors to utilize the strategy?<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[455,6,13857,8,9,22,26,3],"tags":[8284,789,460,44],"contributors-categories":[13819],"class_list":{"0":"post-196476","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-contributor-podcasts","7":"category-north-america","8":"category-podcasts","9":"category-region","10":"category-securities","11":"category-stocks","12":"category-text-articles","13":"category-traders-insight","14":"tag-direct-indexing","15":"tag-investing","16":"tag-podcast","17":"tag-stocks","18":"contributors-categories-validea-capital-management"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Direct Indexing | How it Works and Whether It Is Worth It for Investors<\/title>\n<meta name=\"description\" content=\"Many believe that direct indexing will be the next big trend in investing. But does it make sense for investors to utilize the strategy?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/196476\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Direct Indexing | How it Works and Whether It Is Worth It for Investors | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Many believe that direct indexing will be the next big trend in investing. 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