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Frec Reaches $100M in Assets, Expands Direct Indexing Offerings

Author

Slice of Finance Team
19 Aug

Key Highlights:

  • Frec surpasses $100 million in assets just nine months after launch.

  • Launches four new direct indices: Russell 1000, Russell 2000, Russell 3000, and CRSP ISS US Large Cap ESG.

  • First consumer investment platform to offer such a diverse range of direct indexing options.

  • Direct indexing projected to outpace ETFs and mutual funds in growth by 2026.

Source (Business Wire)

Notable Quote:

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“Reaching this $100 million milestone in less than a year is an indication of the underlying demand for direct indexing. We’re on a mission to bring it to every investor. Ultimately, I see us offering a direct index for every version of the most popular ETFs. We believe that direct indexing will do to ETFs what ETFs did to mutual funds.”

Mo Al Adham, CEO at Frec

Our Take:

Frec’s rapid accumulation of $100 million in assets, coupled with its strategic expansion into additional direct indices, demonstrates the growing appeal of direct indexing among retail investors. By simplifying access to personalized, tax-efficient investment strategies traditionally reserved for the wealthiest individuals, Frec is not only meeting the rising demand but also positioning itself as a leader in the democratization of sophisticated investment tools. The firm's innovative approach could very well shape the future of passive investing, potentially mirroring the transformative impact ETFs had on mutual funds.