Schwab throws the hat in the direct indexing race

Acquisitions and launches are accelerating in the area of ​​direct indexing and, in an effort to match rival Fidelity, Charles Schwab has announced the launch of its new direct indexing products. The funds will be available from April 30, but unlike Fidelity’s ultra-low initial investment of $5,000, Schwab will require a minimum of $100,000. They want their direct index investors to have a better conceptualization of the market and believe that the minimum will attract them. The launch is just coming out of tax season and will hopefully generate interest as tax is a benefit of DI. Schwab will focus on the tax advantages of their tailored offerings as opposed to ESG or other popular flavors with these funds.

Final sum: The timing of this launch could put investors above the odds when it comes to profiting from the tax-loss reaping with their DI products.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button