The New World of Direct Indexing and Mass Personalization: Potential Disruption Can't Be Ignored

Direct indexing in some form has existed for decades, but advances in technology have recently broadened its availability. With its arguable superiority to existing passive index funds and exchange-traded funds, investment industry leaders are positioning for the opportunities and threats it unleashes. While there have already been hundreds of billions of dollars dedicated to direct indexing offerings, numerous firms such as BlackRock and Morgan Stanley have acquired direct indexing capabilities in anticipation of further rapid growth.