Referred to as “the unwrapping of ETFs” or “a personal index” by some pundits, direct indexing is gaining interest among investors. Recently, experts from global index provider FTSE Russell and registered investment advisor and virtual chief investment officer Wealthshield shared insight on the potential benefits of direct indexing.
And in a recently published article for investors on direct indexing entitled The Future of Investing - Direct Indexing, Wealthshield explains why this new approach to index-based investing is different from investing through ETFs, and the difference between these two approaches to index-based investing.
Rolf Agather, managing director, North America research, FTSE Russell:
“As an index provider we are agnostic as to the approach the investor takes, and it is exciting to see how the advent of technology, from mutual funds to ETFs and now direct indexing, has given us the ability to create more fully customized indexes and has given investors increasingly more creative ways to access the underlying index tools for transparent investment exposure.”
Clint Sorensen, CFA, CMT, co-founder of Wealthshield:
“In my opinion, direct indexing is one of the most exciting innovations in the history of investment management. We believe direct indexing may be appropriate for many investors and may offer unique advantages for investors in taxable accounts. Unlike ETFs, direct indexing gives investors the ability to customize the underlying index constituents to allow for more active tax management and customized investment approaches.”
WealthShield recently collaborated with FTSE Russell to launch the FTSE Dividend Select Equal Weight Index Series. The new indexes are designed to measure the performance of US companies that have successfully increased their dividend payments over a period of 10 years.
For more information on the FTSE Dividend Select Equal Weight Index Series, go to the FTSE Russell website.
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