The April 2023 report highlights that direct indexing is set for rapid growth, driven by fractional share trading that lowers costs and minimums while enabling customization for client values, risk tolerance, and ESG preferences. Currently, 62% of firms view it as a top priority, expected to rise to 76% within two years. While the approach can move down-market, it remains focused on affluent clients for tax advantages. Competitive pressure is increasing, with most smaller firms relying on third parties. Fees and minimums are expected to fall, making customization the primary value proposition.

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