The string of direct indexing acquisitions seems to be never-ending, but this most recent one could really aid financial advisors. First Trust Capital is acquiring Veriti Management for their direct indexing platforms, which have enormous advantages for both tax and customization preferences, such as ESG.  However, Veriti’s roots are ‘for..and…built-by-advisors’ that could distinguish it moving forward according to a senior strategist at First Trust Ryan Issakainen. The co-founder is an advisor and his background has developed further tools that could be useful to clients on their platform. Additionally, they offer nearly bespoke ESG options but at much higher minimums than the new offers coming out; Verti’s start at a quarter of a million dollars.

Finsum: This could be a nice middle option for advisors with high net worth clients, who want the flexibility of custom indexing.