The Rise of Direct Indexing for Retail Investors

For decades, direct indexing was a strategy available only to institutional investors and the ultra-high-net-worth. It required significant capital and sophisticated software to manage the hundreds of transactions needed to replicate an index.

Breaking the Barrier

Advances in fractional share trading and automated execution APIs (like Alpaca) have changed the landscape. Today, software can manage a direct-indexed portfolio with the same ease as buying a single ETF share.