Direct (Custom) Indexing

Can I have a direct index which replicates performance of a blend of my top 3 LICs please. Make it synthetic...

 

Efficient Frontier, Risk Parity and a few other interesting concepts.

As the funds indexing become larger and the metronome effect happens, returns will diminish unless a large amount of unindexed capital comes into the market.
So i would expect lower returns for the next 10yrs or so. This may also lower volatility which in turn lowers the volatility or price drop at which the funds sell off a dropping stock...which may make price drops faster.

 

An interesting proposed US tax bill that could kill the tax advantages of US ETFs and accelerate the adoption of direct investing should the bill be passed by the US government

Basically closes the unique creating/redemption process and heartbeat trades that prevents internal capital gains from being passed onto investors

https://www.nasdaq.com/articles/etf-taxation-in-the-crosshairs-2021-09-13