Fidelity now offers direct indexing for individuals for 40 bps per year, as well as zero-fee total market index funds. Which one should I dollar cost average (I.e., invest $x every n-th month) in? Does the problem boil down to an average correlation / dispersion parameter? Ignore the tax benefits of direct indexing. I would appreciate any references.

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    $\begingroup$ To my knowledge the advantage of direct indexing is the tax savings from "harvesting" capital losses. If you ignore this tax benefit I am not sure there is anything left to analyze. $\endgroup$
    – nbbo2
    Apr 26, 2022 at 18:42


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