New to Direct Indexing?
Direct indexing (also known as direct index investing) strategies are appealing for several reasons:
- Their ability to be customized and tax-managed.
- They usually have lower minimums than other highly personalized investment portfolios.
- Inflows into direct index investing products are projected to grow at "an annualized rate of more than 12% over the next five years, faster than traditional financial products."*
*Cerulli Associates. "Direct Indexing Growth Projected to Outpace ETFs, Mutual Funds, and Separate Accounts Over Next Five Years." August 16, 2021.
IMPORTANT: An investment in these portfolios is subject to market risk and an investor may experience loss of principal. Investments that utilize a direct indexing strategy carry specific risks that investors should consider before investing in QP portfolios. In certain market conditions, passive direct indexing investment strategies may lose value or underperform active strategies. Direct indexing strategies have the risk of not closely tracking the performance of the underlying index they seek to replicate. While attempting to track an index, passive investments often do not consider a company’s profitability, financial health, or growth potential in their investment selection criteria.
Envestnet's direct indexing solutions, the Quantitative Portfolios, are:
Priced materially lower than actively managed SMAs
9+ years in market and one of the largest direct index investing providers
Easily personalize along traditional and more complex dimensions like factors
Designed to be used with Tax and/or Impact overlay applied to them
Already an Envestnet user?Simply search "Quantitative Portfolio" in your Research tab to see what index investing options are available to you.
Want to learn more?We'll be in touch soon to answer any questions you may have about Quantitative Portfolios.