In May 2025, FTSE Russell, in partnership with 8 Acre Perspective, surveyed 402 U.S. financial advisors to better understand how direct indexing is evolving as a tool for wealth management.
Advisors came from a mix of channels, including Wirehouses, traditional, independent broker-dealers and registered investment advisors. Average AUM was over $400 million. Insights from this research include:
- Most advisors plan to step up direct indexing (DI) in the next 12 months, with the greatest opportunity coming from wealthy clients.
- Tax management is seen as DI’s greatest benefit, followed by its potential as a tool for reducing portfolio concentration. Artificial intelligence (AI) is serving as a catalyst speeding adoption, as it can automate implementation of tax efficiencies.
- Education remains a challenge, especially explaining DI to clients. Additionally, some advisors perceive implementation as a difficulty.
- Younger advisors view DI as key differentiator; those under 45 see DI as vital for them to remain competitive, at a time when personalization is key.
