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The Advisor Perspective on Direct Indexing

April 19, 2022
The investment industry has witnessed impressive growth in custom passive separately managed accounts (SMAs) as more investors and their advisors recognize their value. As a result, M&A activity has bolstered major financial firms’ offerings in this category. These increasingly popular custom passive SMAs, with their many benefits, from active tax management to responsible investing frameworks, have attracted a new name: direct indexing.

Parametric has offered custom passive SMAs for more than 30 years. But with so much buzz around direct indexing in more recent years, we wanted to deepen our understanding of current growth and future opportunities in the direct indexing space. That’s why we partnered with Cerulli Associates to survey a targeted list of advisors serving high-net-worth (HNW) investors. They’ve offered us a comprehensive picture of who uses direct indexing, how it benefits their clients, and where they can unlock the potential for an even more enhanced investor experience.

In this report:
  • Who’s using direct indexing—and why others aren’t
  • How clients benefit from tax-managed direct indexing
  • Why responsible investing has room to grow in direct-indexed portfolios

More to explore