ENVESTNET ANNOUNCES FIRST-OF-ITS-KIND DIRECT INDEXING SOLUTION IN CANADA

New Innovation Brings Model-Traded Direct Indexing to Unified Managed Accounts for the First Time in Canadian Wealth Management

BERWYN, Pa., March 31, 2025 /CNW/ -- Envestnet is expanding its commitment to the Canadian wealth management market with the launch of a Direct Indexing (DI) solution—the first of its kind in Canada to be model-traded and held within a Unified Managed Account (UMA). This innovation represents a major milestone in personalized portfolio management, offering greater flexibility, customization, and tax efficiency for Canadian advisors and their clients.

Direct Indexing has become a cornerstone of modern wealth management, allowing investors to personalize portfolios, optimize tax efficiency, and customize exposure to align with their financial goals. According to Cerulli Associates¹, direct indexing is the fastest-growing segment in managed accounts, with assets expected to grow at a 12.3% compound annual growth rate (CAGR) from 2022 to 2026, outpacing ETFs and mutual funds. By 2026, Direct Indexing assets are projected to reach $800 billion, driven by increasing advisor adoption and investor demand for personalization and tax efficiency. More than 60% of advisors surveyed by Cerulli indicated that they are considering direct indexing as an alternative to traditional ETFs and mutual funds. While these figures are based on a study conducted in the U.S., we anticipate a similar trajectory in the Canadian market as investor expectations evolve and demand for personalized, tax-efficient solutions like Direct Indexing continues to rise.

With this launch, Envestnet, through its QRG Capital Management, Inc. asset management unit, is introducing an innovative DI solution within a UMA structure, enabling Canadian advisors to seamlessly integrate model-traded direct indexing strategies into a holistic, multi-asset portfolio. 

"Since 2013, QRG has been a pioneer in delivering model-based direct indexing solutions in a UMA format, and with strong growth in this area, we've become the largest broadly distributed SMA manager on the Envestnet platform²," said Brandon Thomas, Co-Chief Investment Officer for Envestnet. "We are thrilled to have, once again, set the standard by developing and  managing these strategies, specifically for Canadian advisors and their clients."

This announcement is part of a broader initiative by Envestnet to expand its platform capabilities and enhance the advisor and client experiences in Canada.

"As we continue to deepen our presence in Canada, our goal is to provide advisors with tools to meet the evolving needs of their clients," said Michael Featherman, Head of Investment Consulting & Distribution for Envestnet. "This is the first time in the Canadian market that Direct Indexing has been integrated into a Unified Managed Account structure, giving advisors a powerful tool to offer true portfolio personalization at scale. We believe this innovation will redefine the way Canadian investors access tailored wealth management solutions, bringing them greater control, efficiency, and flexibility."

ABOUT ENVESTNET
Envestnet is helping to lead the growth of wealth managers and transforming the way financial advice is delivered through its ecosystem of connected technology, advanced insights, and comprehensive solutions—backed by industry-leading service and support. Serving the wealth management industry for 25 years, Envestnet technology and services are trusted by more than one-third of all financial advisors. Many of the largest North American banks, wealth management and brokerage firms, and advisors depend on Envestnet to help drive business growth and productivity—and deliver better outcomes for their clients.

For a deeper dive into how Envestnet is shaping the future of financial advice, visit www.envestnet.com. Stay connected with us for the latest updates and insights on LinkedIn and X (@Envestnet_).

Envestnet refers to the family of operating subsidiaries of the holding company, Envestnet, Inc.

¹ U.S. Managed Accounts 2023, Cerulli Associates
² AUM Data as of March 22,2025

SOURCE Envestnet

Amy Norcini, Envestnet, [email protected]; Laura Simpson, JConnelly for Envestnet, [email protected]