IDK about a "no-brainer". Do index-based direct-indexers offer TLH? If so, how? And if you don't want TLH, FZROX has beaten the SP500 slightly (yes, I know, it doesn't claim to track the SP500 exactly...) and it does it at 0 basis points. If we're micro-optimizing to the point of looking at single-digit basis points, I'll take an ultra-simple 1-fund deal that outperforms by >10 basis points after fees.Direct indexing isn't very expensive anymore. Wealthfront has a direct to consumer offering at 9 bps and Aperio/Parametric can be 10 bps if negotiated. Honestly, at 9-10 bps, direct indexing is a straight up no-brainer vs buying the index tracking ETF at ~3-5 bps less.
If you don't like the FZROX comparison, do the same math with FXAIX. Even VOO trails the SP500 by 4 basis point, 3 of which are the ER. 9 is more than 4.
Statistics: Posted by bd7 — Fri Oct 17, 2025 7:30 pm — Replies 45 — Views 2558