Ryan Sullivan
- Generational shifts are reshaping advisor challenges, as retirees stay invested and younger investors demand customization.
- Direct indexing is accelerating, offering tax management and personalization at scale.
- Broad index adoption is growing, enabling platforms to deliver choice and flexibility for diverse investor needs.
The advisory landscape is undergoing profound change. From demographic shifts to rising expectations for personalisation, advisors are rethinking how they serve clients. In this edition of Wealth Insider Insights, we spoke with Ryan Sullivan, Head of Buy Side Americas, Index Sales at FTSE Russell, about the challenges advisors face, the role of direct indexing, and why demand for broad indexes is on the rise
Q. What type of challenges do you think advisors are facing with clients today, and how is direct indexing helping them address and overcome those challenges?
There’s a lot of change happening in the advisory market, especially in the U.S. We’re seeing a generational transformation in the client base. Many investors preparing for retirement now need to stay invested in equities rather than shifting to fixed income or cash as they withdraw. At the same time, a new generation is building wealth—and they’ve grown up with tools focused on customization. They expect financial products that allow them to optimize and personalize their investments.
This creates pressure on advisors to deliver new solutions for both legacy clients and emerging investors. Direct indexing sits at the crossroads of these needs. Advances in technology now make tax management and personalization far more accessible. Advisors can leverage these tools to support retirees and meet the expectations of younger, digitally savvy clients. It’s a ripe moment for direct indexing to accelerate growth in the advisory market.
Q. What are some of the key things these firms need to keep in mind as they vie for client assets and look to engage financial advisors?
For direct indexing providers - whether established players or new entrants—three priorities stand out.
First, segment the advisory landscape. The FTSE Russell 2025 Direct Indexing survey of financial advisors shows advisors under 45 and those in Wirehouses are currently the largest users of direct indexing. As the market matures, adoption will expand into RIAs and broker-dealer channels. Understanding where advisors access investment products is critical.
Second, address technology integration. Nearly 80% of survey respondents cited friction when implementing direct indexing tools into their tech stacks. Platforms need to simplify onboarding and integration.
Third, focus on education. Providers should advocate for ease of use and demonstrate how advisors can adopt these tools effectively. Clear education will help differentiate platforms and drive market share growth.
Q. You indicated earlier that you have seen an uptick in interest around some of the broader Russell indexes such as the Russell 3000 and the Russell 1000 Growth. Why do you think that is?
Demand for broad indexes like the Russell 3000 is growing because they maximize choice for direct indexing platforms and their clients. A wide investment universe enables tax optimization and portfolio personalization. The Russell 3000, for example, spans mega-cap to micro-cap stocks and serves as a comprehensive indicator of the U.S. equity market.
It’s not just the Russell 3000. We’re seeing strong adoption of Russell 1000 Growth and Value indexes, which allow platforms to tailor portfolios based on investment philosophy. Beyond these flagships, demand is rising for ADR indexes, green revenues indexes for values-based investors, and global equity series that provide robust international exposure. Ultimately, it’s about giving advisors and investors flexibility to align portfolios with their goals.
Personalization at scale
As Ryan highlights, demographic shifts and evolving investor expectations are reshaping wealth management. Direct indexing offers a powerful solution—combining tax efficiency, customization, and technology to help advisors meet diverse client needs. Platforms that simplify integration, educate advisors, and deliver broad index access will lead the way in creating personalized, scalable investment experiences.
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