Direct Indexing: A Detailed Look at an Emerging Investment Approach

Direct Indexing Investment Strategy Direct indexing is an innovative investment strategy that involves purchasing the individual stocks that make up a particular index, such as the S&P 500, in the same proportions as the index itself. This approach differs from investing in index mutual funds or exchange-traded funds (ETFs), where investors buy shares in a fund that tracks the performance of the index, rather than owning the underlying stocks directly.