#USA #New York #Direct Indexing #SP 500 #Public

Public's New Offering: Direct Indexing

In an exciting development for retail investors, Public has officially launched a direct indexing feature that enables users to customize their portfolios significantly. Traditionally, this advanced investing strategy was largely available only to high-net-worth individuals, but Public's new offering lowers the entry barrier, making it accessible for a broader audience.

What is Direct Indexing?

Direct indexing is a strategy that allows investors to own individual stocks from an index, such as the S&P 500, instead of purchasing a mutual fund or ETF that tracks the entire index. This unprecedented level of ownership brings with it several benefits, including the potential for tailored investment strategies and automatic tax-efficient measures like tax-loss harvesting.

Public members now have the ability to create and manage their own direct indices from a selection exceeding 100 foundational indices provided by well-known partners like Solactive and S&P. This feature isn't just innovative but is designed to help retail investors lower their tax liabilities through automated strategies, thereby enhancing their investment efficiency.

Accessibility for All

Previously, investing in direct indices required significant financial backing, often asking for minimum investment amounts reaching into the five- or six-figure range. However, Public's offering breaks down this barrier with a minimum investment set at just $1,000, in addition to a modest annual management fee of only 0.19% for each index. This initiative empowers retail investors to engage with the stock market closely, ensuring they can curate their portfolios according to their financial goals and personal values.

Leif Abraham, COO and Co-Founder of Public, expressed enthusiasm about this launch, emphasizing that "Sophisticated investors want control over their portfolios. Our new direct indexing product not only provides them a wide range of indices but also the total control to select which companies they wish to invest in". This effectively transforms standardized indices into personalized investment vehicles, catering to individual preferences.

The Advantages of Customization

With the new direct indexing features, Public members can select specific sectors they wish to focus on, whether it is technology, healthcare, or other areas of interest. This bespoke approach not only connects investors to the sectors they care about but also allows them to manage weightings of individual companies within their portfolios. It instills a sense of ownership and engagement, which is crucial in today's investment landscape.

The direct indexing feature launched on Public is available on various platforms, including iOS, Android, and web browsers. Retail investors can dive deeper into the world of direct indexing and discover the best strategies for their unique investment aspirations through Public’s user-friendly interface. This recent addition is part of Public's broader mission to democratize investing, ensuring that more individuals can partake in the advantages typically reserved for wealthier clients.

About Public

Founded in 2019, Public has become a trusted platform for long-term investments, offering users the chance to construct diverse portfolios from an array of asset classes, including stocks, bonds, cryptocurrencies, and options. With headquarters in New York City, the platform has garnered billions in assets from enthusiastic investors and has secured over $400 million in funding from notable investors such as Accel and Tiger Global.

As investing culture shifts toward more inclusive and hands-on approaches, Public’s visionary strategies aim to reshape how individuals interact with their investments, making direct indexing not just a privilege but a standard for all investors.