Direct indexers may need to grapple with the fact that they could end up paying more to own, edit and potentially underperform an index than they would if they owned an ETF based on the same benchmark.
“You accept a certain amount of deviation,” Brian Langstraat, the chief executive officer of Parametric, said on an episode of Bloomberg’s “Trillions” podcast. “You have to be willing to accept a difference in order to avail yourself of the customization.”
This article was provided by Bloomberg News.