Direct indexing has crossed into the mainstream among financial advisors, but the barriers holding back wider adoption have shifted from convincing clients to fixing the plumbing behind the scenes. 

FTSE Russell's latest survey of 400 US advisors found 83% are now using or planning to use direct indexing, up from 76% a year earlier, with the same share saying the strategy has helped grow or strengthen their high-net-worth business. 

Tax loss harvesting remains the primary draw, cited by 66% of respondents as the main benefit. Client demand and education have actually become smaller obstacles, falling to 35% and 33% respectively. What is getting harder is everything on the advisor side. Technology integration challenges jumped to 59% of respondents from 52%, cost concerns rose to 29% from 19%, and even advisors own understanding of the strategy became a bigger hurdle, cited by 31% versus 27% last year. 

Finsum: Direct indexing's growth is no longer being slowed by client skepticism, it's being slowed by technology.