The frenzy of direct indexing acquisitions will make tax-loss harvesting table stakes. Direct Indexing's true upside is personalization, but without more precise client diagnostics, that upside is limited.
First-time ESG investors are likely to feel “choice overload”, which means fewer will choose to invest and those who do will feel more regret. Asset and wealth managers need to understand how choice overload works, so they can help their clients avoid it.
As large wealth management firms head into the middle innings of advice transformation, they’ll face a new set of personalization risks. Winning firms will build a different sort of client insight “backbone” to mitigate these risks and bind together their personalization efforts.