Today on Equity Compensation Guidebook we're going to talk about another tax-smart investing concept, direct indexing. Direct indexing is building out an investment portfolio to track the performance of a specific index. However, you do it through buying individual positions instead of buying an exchange-traded fund (ETF) or a mutual fund. 

The concept of direct indexing has been around for years and it provides many benefits which we'll cover in this episode. Up until now, it hasn't been available to the masses as it was expensive to administer. The investment companies that provided direct indexing had to set high minimums which put it out of reach for many investors. Fortunately, technology has advanced enough to provide more access to the continuously increasing interest in direct indexing.

You will want to hear this episode if you are interested in...

• The concept of direct indexing [1:27]
• Picking on mutual funds [3:26]
• Taking out the middleman with ETFs [4:44]
• How direct indexing can help you be even more tax-smarter than ETFs [6:49] 
• Flexibility that puts you in control of the companies you invest in [9:26]
• This week’s FLASHBACK [11:23] 

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