June 10, 2023

Dawson County Journal

Dawson County, Nebraska

Investing: Custom-Made Indexes for Cost-Conscious Index Investors

By Robert Frick
From Kiplinger’s Personal Finance
A growing number of investment firms now offer Main Street investors a strategy called “personalized” or “direct” indexing that typically requires buying and trading stocks directly, mimicking an index.
Investment firms and advisers have long offered this strategy to the wealthy for an annual fee that often exceeds 1 percent of the portfolio’s value. But now, enabled by no-commission trading, smart supercomputer programs and the ability to buy fractions of shares, at least three firms: Fidelity, Schwab and Wealthfront, are repackaging the service for cost-conscious index investors. The new offerings enable you to dabble in personalized indexing with portfolios as small as $1, for fees ranging from $4.99 a month to 0.4 percent a year….
Source: The Epoch Times