Morningstar recently announced the launch of Direct Indexing. The new offering will draw from industry-leading research, technology, and insights from Morningstar to help deliver greater personalization, automation, and tax efficiency for advisors and their investors. It will utilize many of the firm’s in-house capabilities, including Morningstar's Investment Management, Morningstar Indexes, Morningstar Sustainalytics, and Morningstar Equity Research to create and manage personalized investment strategies. Initially, the direct Indexing portfolios will be made available through the Morningstar Wealth Platform. This is one of the firm's first major product launches from Morningstar Wealth, a new group combining managed portfolios from Morningstar's Investment Management group, portfolio management software Morningstar Offices, investment data aggregator ByAllAccounts, and the individual investor experience across Morningstar.com. Morningstar Wealth is expected to introduce additional functionality and capabilities to advisors and firms in the coming year. According to Morningstar, approximately 61 percent of advisors indicate they are using or are considering using direct indexing.

Finsum:With a majority of advisors using or planning on using direct indexing, Morningstar has launched its own Direct Indexing offering.

Category: Wealth Management

Keywords: direct indexing, advisors, clients, tax efficiency