WA MAGAZINE JanFeb PDF A - Flipbook - Page 30
DIRECT INDEXING
2024 Wealth Advisor Platform Rankings
W
hile scale is the ultimate gauge
of success in our industry, it’s
hard to build scale without a
compelling and tangible value proposition. Any direct index platform can blow
through a mountain of venture capital
money attracting assets to the platform,
but keeping the accounts beyond the
honeymoon period requires heavier lifting.
After all, you’re asking advisors to hand
over the keys to their entire career: the
clients, the portfolio, the reporting, even
the billing. Execution needs to be as close
to perfect as possible.
We asked the 350,000 advisors in
our network to share their experience
with various platforms. Popularity had
nothing to do with it. If only one advisor
spoke up and loved you, you did well. If
thousands took the trouble to rate you
“average,” the weight of their lack of enthusiasm dragged you down. And it only
takes a few disappointments to knock
BEST
SERVICE
you out of the top tier entirely. Remember,
you aren’t a discretionary expense for the
advisors you work with. You’re essential.
They trust you.
In our view, every platform that wants
to be a viable competitor needs to hit a
sweet spot in terms of three crucial areas
of business. You need technology that
creates more efficiencies than complications. You need human beings behind the
technology who can solve problems and
provide coaching. And you need to deliver
investment solutions that help you hold
onto your clients and capture new ones.
One thing to keep in mind: these
rankings are not a traditional popularity
contest. While big names with broad
brand presence obviously get a lot more
votes than more niche-oriented players,
the goal is to reflect quality of experience
and not just brute reach. A boutique platform with a small but passionate following
will do better than a giant that serves a lot
BEST
TECHNOLOGY
BEST CLIENT
OUTCOMES
of people but alienates a lot of potential
partners along the way.
And we’re still in the early stages here.
This is the Wild West for many advisors
and the numbers will change. Platforms
that try to skimp on human talent or
coast on aging systems will suffer as new
names rise to the top. There’s always
room for startups with fresh ideas and
disruptive ideas. Even if you’re not a giant
today, you can still have what it takes to
become a big name in years to come.
And remember, these scores are
relative in the aggregate but when you
drill down into each advisor’s professional
experience, the numbers are absolute.
Don’t settle for giving them an “average”
relationship. Excel. If you want to be a
winner, keep telling your story and keep
innovating. Listen to advisors and give
them what they need. We penalize platforms severely for every “below average”
or “poor” response.
TOP TAMP
(OVERALL)
(tie)
Disclaimer: Each direct indexing platform (“Provider”) included in Direct Indexing Buyers Guide 2024 was incorporated into an independent survey of all Wealth Advisor subscribers, and the rankings
presented were calculated based on the results. The methodology used for this independent survey of The Wealth Advisor’s registered subscribers was deployed on September 6, 2024,and closed on
September 20, 2024. The survey uncovered advisor familiarity and overall satisfaction covering three categories set forth above for the direct index solution providers we track. Additional survey results
will be published in updates to the Direct Indexing Buyers Guide. Each provider paid the same sponsorship fee to be listed in the Direct Indexing Buyers Guide. Sponsorship fee has no tie-in or connection
to survey results. The fee entitles providers to also receive marketing services from The Wealth Advisor.
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