10 must-ask questions for your direct indexing provider.

A scalable way to enhance personalization without increasing operational complexity.

The right direct indexing provider isn’t just a choice—it’s a strategic advantage that strengthens your competitive edge. These ten questions are designed to help you evaluate direct indexing providers beyond surface‑level features, so you can choose a partner that fits how you deliver advice.
 

1. What level of customization does the platform offer? 

   Choose a platform that aligns portfolios with client values, tax sensitivity, restrictions, and goals. 

2. How does the provider handle tax-loss harvesting? 

   Evaluate how frequently the provider scans for tax-loss harvesting opportunities and the methodology they use. 

3. What are the costs and fees? 

   Make sure to ask how each provider presents their fees and the methodology behind them.

4. What are the minimum investment requirements? 

   Make sure the provider’s minimum account size is suitable for the typical portfolio size of your clients. 

5. What asset classes and securities are available? 

   Check whether the provider offers access to the asset classes your clients need, including equities and fixed income.

6. How much control do advisors and clients have over holdings? 

   Determine if the provider offers the right balance of automation and advisor control for both systematic management and customization.

7. What kind of technology and user experience  does the platform provide? 

   Assess whether the provider offers intuitive dashboards, automated reporting, and API integrations with major custodians. 

8. What kind of support and educational resources are available? 

   Ask if the provider offers advisor training, client-ready educational materials, and a responsive service team. 

9. How does the provider handle rebalancing and trading? 

   Evaluate how often the provider rebalances, and what control they have over the process. 

10. What is the provider’s experience in direct indexing? 

    Inquire about the provider’s history of innovation, stability, and positive advisor experiences.

Important information

Investment services in the U.S. provided by SEI Investments Management Corporation (SIMC), a wholly owned subsidiary of SEI Investments Company (SEI). 

There are risks involved with investing, including loss of principal. There is no guarantee risk will be managed successfully. Tracking error risk is the risk that the performance of a portfolio designed to track an index may vary substantially from the performance of the benchmark index it tracks as a result of cash flows, portfolio expenses, imperfect correlation between the portfolio’s and benchmark’s investments and other factors. This risk is magnified when sampling a benchmark index as the strategy may not track the return of its benchmark index as well as it would have if the strategy purchased all of the securities in its benchmark index.

Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor. 

Please see SIMC’s Form ADV Part 2A (or the appropriate wrap brochure) for a full disclosure of the fee schedule.