Financial Advisors Who Integrate Direct Indexing Report Higher Client Retention and Wallet Share

Northern Trust Asset Management’s study of direct indexing “Superusers” identifies drivers of strong client relationships and business growth

CHICAGO–(BUSINESS WIRE)–Direct indexing is a platform to grow business, deepen client relationships and stand apart in a competitive marketplace, according to a new survey of financial advisors. More than just a tool for tax-loss harvesting, financial advisors who have fully integrated direct indexing into their business report it has led to improved client retention, a better client experience and the ability to capture a larger share of wallet from existing clients.

Northern Trust Asset Management’s research shows that these direct indexing “Superusers” have followed a repeatable journey through education, assessment and testing before reaching the integration stage. Advisors who reached Superuser status shared the actions they took and how they engaged with clients along the direct indexing journey, providing a roadmap for other advisors.

The research found:

• Direct Indexing Adoption Drives Business Growth: 88% of Superusers report stronger client retention and 87% report increased wallet share after integrating direct indexing. Most began with a handful of clients, then expanded rapidly as positive results and client satisfaction became clear.
• Direct Indexing Goes Beyond Tax-Loss Harvesting: Direct indexing enabled deeper client engagement, differentiated service and a competitive advantage. 93% of Superusers say direct indexing enables more meaningful planning conversations.
• Personalization is the New Standard: Advisors and clients value direct indexing for more than tax benefits. Portfolio customization, risk management, transparency and goal planning are central to the client experience, reshaping how advisors deliver value beyond portfolio returns.
• Integration is Easier Than Expected: Superusers rated direct indexing integration 2.4 out of 5 in difficulty, with 45% saying it requires only 0-5 hours per month. 41% would integrate direct indexing more aggressively if starting over.
• Clients that Benefit the Most Share Common Traits: Advisors can look for commonalities that signal the best fit for direct indexing accounts, including: a typical entry point of $250K to $500K+ in investable assets, taxable accounts and a desire for personalization.

“Direct indexing can empower financial advisors to deliver personalized, transparent, and effective portfolio management, strengthen client relationships and drive business growth,” said Suzanne Casey, Co-Head of the Wealth Client Group, Northern Trust Asset Management. “Direct indexing is becoming the default expectation among wealthier clients, so advisors who integrate it into their practice are positioning themselves for long-term success.”

“Direct indexing is no longer just a tax tool—it’s a transformational platform for advisors and clients alike,” said Ken Lassner, CFA, Direct Indexing Lead Product Strategist, Northern Trust Asset Management. “This research shows how direct indexing is driving real business results for financial advisors and elevating the client experience. And with the tools, resources and dedicated support Northern Trust Asset Management provides, we’re helping advisors unlock direct indexing’s full potential.”

Northern Trust Asset Management conducted two comprehensive surveys in 2024 and 2025 to understand direct indexing adoption among financial advisors. The first survey included a quantitative sample of 300 advisors across various channels (RIA, IBD, wire, bank/trust) and in-depth interviews with 31 advisors, focusing on direct indexing usage and stages of adoption. The second survey targeted “Superusers”—advisors who have fully integrated direct indexing into their practice—through a quantitative sample of 87 advisors and interviews with 11 Superusers. Both studies centered on higher-AUM firms and experienced advisors.

Read the full research report.

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with $1.4 trillion in assets under management as of December 31, 2025, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2025, Northern Trust had assets under custody/administration of US$18.7 trillion, and assets under management of US$1.8 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

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