The S&P 500's performance often diverges from that of its constituents. Direct indexing takes advantage of this by harvesting losses stocks with losses.

Direct indexing’s popularity has soared, with assets invested in direct indexes exceeding $260 billion at the end of 2022. This approach, which involves investing in the individual securities ...

Selling a major asset can result in huge capital gains taxes, but combining direct indexing with tax-loss harvesting can significantly reduce your tax bill.

An index is just a set of securities with different weights, often chosen using a process such as market-cap weighting, industry sector restrictions, liquidity, etc. Direct indexing is, or should ...

Market-weighted indexes may end up over-exposed to expensive investments, and underweight more attractively valued ones. That can be a problem. Of course, there are advantages to the approach too.