$100 Million in Customer Assets
We are thrilled to announce that Frec has reached $100 million in customer assets, just nine months after our launch. This achievement reflects the growing demand for our innovative direct indexing platform, which makes sophisticated investment strategies accessible to individual investors.
Expanding our direct indexing suite
In response to customer feedback and as part of our commitment to expanding direct indexing investment options, we’re excited to introduce seven new indices to our platform:
- S&P Developed Markets ADR
- Russell 1000
- Russell 2000
- Russell 3000
- CRSP ISS US Large Cap ESG
- CRSP Mid Cap
- S&P 500 Shariah
With these additions, our total offering now includes twelve indices, making Frec the first consumer investment platform to provide such a diverse range of direct indexing options.1 We’re particularly proud of our partnership with Russell, whose indices serve as leading benchmarks for institutional investors. This collaboration underscores our commitment to bringing institutional-grade investment solutions to you, our individual investors.
The power of direct indexing
For those new to the concept, direct indexing allows you to own the individual components of an index directly. This approach enables you to track the returns of an index while potentially benefiting from tax-loss harvesting opportunities, which can enhance your after-tax returns. Research shows that direct indexing can provide 2-3x more opportunities for tax-loss harvesting than ETFs.2
Our vision for the future
Industry projections suggest that direct indexing is poised for significant growth, potentially outpacing ETFs, mutual funds, and separately managed accounts (SMAs). The strategy is expected to reach $800 billion in assets by 20263, and we’re excited to be at the forefront of this trend.
Our CEO, Mo Al Adham, shares his perspective: “Reaching this $100 million milestone in less than a year is an indication of the underlying demand for direct indexing. We’re on a mission to bring it to every investor. We believe that direct indexing will do to ETFs what ETFs did to mutual funds. In our view, it’s simply a better way to passively invest in the market.”
Looking ahead
As we continue to grow, our focus remains on expanding our suite of offerings to meet your needs. “Ultimately, I see us offering a direct index for every version of the most popular ETFs,” Al Adham notes.
We’re proud of what we’ve achieved so far, but we recognize that this is just the beginning. We remain committed to innovating and improving our platform to help you, our customers.
Important Disclosure: Investing involves risk, including possible loss of principal. Direct indexing strategies may not be suitable for all investors. Please carefully consider your financial situation, risk tolerance, and investment objectives before making any investment decisions. Past performance does not guarantee future results.
