After launching 9 months ago, Frec has announced surpassing $100 million in customer assets.
Frec is a FINRA-regulated broker-dealer and RIA. Frec enables index investing focusing on tax loss harvesting to mitigate some of the punitive taxes shouldered upon investors.
Frec has also announced several new direct indices, including the Russell 1000, Russell 2000, Russell 3000, and CRSP ISS US Large Cap ESG.
As of today, Frec offers nine individual indices.
Frec explains its value proposition as follows:
“Direct indexing, an investment strategy that allows investors to directly purchase the individual components of an index, has been gaining traction among mainstream investors. It enables investors to track the returns of an index while benefiting from the ability to offset capital gains with any losses. In the past, this strategy was available via wealth advisors at high minimums and fees. However, advancements in technology, such as fractional shares and commission-free trading, have lowered the barriers to investing and reduced the complexity of the strategy. Frec has seized this opportunity to deliver the greatest choice and flexibility for these investors.”
Frec reports that direct indexing is predicted to outgrow ETFs, Mutual Funds, and SMAs.
Frec CEO Mo Al Adham said the milestone they have reached is indicative of strong demand for their service.
“We launched with the popular S&P 500 and S&P InfoTech indices. While we’ve seen significant growth, the number one request from customers has been the addition of more indices. I see a lot of customers wanting to switch from ETFs to direct indexing, so we are scaling up the variety,” said Al Adham. “Ultimately, I see us offering a direct index for every version of the most popular ETFs. I’m especially pleased to partner with Russell, whose indices serve as leading benchmarks for institutional investors. We believe that direct indexing will do to ETFs what ETFs did to mutual funds. In our view, it’s simply a better way to passively invest in the market.”
