Broadridge surveyed 500 executives and advisors at North American wealth and asset management firms to gain insights into the fast-growing direct indexing market.

Direct indexing is entering a new era, as many of the largest financial firms enter the space and make strategic acquisitions. This study explores the business impact of direct indexing and provides practical guidance on how to prepare your firm for this new trend.

Key findings include:

• 84% of firms with more than $100 billion in assets under managements (AUM) are currently offering direct indexing
• Interest is highest among younger investors, with millennials leading the way
• 85% of those currently offering or planning to offer direct indexing see moderate to high replacement of ETFs
• Active tax management and ESG are the two most common drivers of interest