There’s a growing interest in direct indexing as the investing trend becomes ‘democratized’

Charles Sachs, chief investment officer at Kaufman Rossin Wealth, was interviewed by CNBC. The article provides commentary on how direct indexing is becoming a growing trend for investors, with several quotes from Sachs on the flexibility of direct indexing as well as the higher costs and complexity associated with it.

Article Excerpt: 

“As demand grows for specialized portfolios, a trend known as direct indexing is quickly becoming an option for more investors. Rather than owning a mutual or exchange-traded fund, direct indexing is buying the stocks of an index to achieve goals like tax efficiency, diversification or values-based investing. Traditionally used by institutional and high-net worth investors, direct indexing is poised to grow more than 12% per year, faster than estimates for mutual funds and ETFs, according to Cerulli Associates.

How direct indexing works

Charles Sachs, a certified financial planner and chief investment officer at Kaufman Rossin Wealth in Miami, said one of the biggest perks of direct indexing is flexibility.

However, direct indexing may have higher costs and more complexity than buying a passively-managed index fund, Sachs said.”

To read the full article, please visit CNBC.

Charles Sachs, CFA, CFP®, is a Chief Investment Officer at Kaufman Rossin Wealth, LLC, a Registered Investment Adviser.