While direct indexing strategies are gaining popularity, advisors show varied levels of adoption and interest in the approach. A recent survey revealed that 34% of advisors are either using or planning to use direct indexing, while 39% have no intention of adopting it. 

Interestingly, 28% remain open to considering it in the future, reflecting a mix of enthusiasm and hesitation within the advisory community. The high minimum investment requirements, limited familiarity with the strategy, and a preference for traditional active management may explain why some advisors have yet to embrace it. 

Advocates highlight the benefits of direct indexing, such as tax optimization, personalization, and the ability to tailor portfolios to individual values, like ESG or thematic investing. 

Finsum: With costs declining and competition increasing, demand for direct indexing is expected to grow, potentially making it a must-have tool for advisors seeking to remain competitive.