Today's Animal Spirits is brought to you by Orion.

Welcome to Animal Spirits, a show about markets, life, and investing.

Join Michael Batnik and Ben Carlson as they talk about what they're reading, writing, and watching.

Michael Batnick and Ben Carlson work for Rit Holt's Wealth Management.

All opinions expressed by Michael and Ben or any podcast guests are solely their own opinions

and do not reflect the opinion of Ritt Holt's

wealth management. This podcast is for informational purposes only and should not be relied

upon for investment decisions. Clients of Ritt Holt's wealth management may maintain

positions in the securities discussed in this

podcast. Ben and I speak with Rusty Vanaman, chief investment officer for Orion, about all things related to a topic that I think is going to be

come more and more prevalent in the financial services industry in the next couple of

years direct indexing. The progression is mutual funds index funds ETS

now direct indexing I think what was before the mutual fund just stocks holding

individual stocks yeah bucket, bucket shops.

Man, I would have killed it in the bucket shops, not to brag.

You would have gotten crushed.

You would have been the guy holding up the sign and the Great Depression photo having to sell your car.

But this idea of direct indexing, the fact that you're hearing more and more about it, and it's still a pretty tiny part of the whole wealth management industry

but the fact that costs went to zero in terms of commissions is made it perfect

for this because that was now it's like the breaking of the dam yes we talked a little bit about what it is in our in our talk with rusty but direct indexing is simply

recreating an index like the S&P 500 and potentially changing it any way that you want. You could exclude certain companies,

but it's easy to mimic it by buying all the stocks

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