Wallace Finance, an AI-driven investing fintech, today announced the launch of its trading platform, enabling retail investors to create, manage, and share hyper-personalized investing strategies through modified direct indexing. The launch is powered by Alpaca, a global leader in brokerage infrastructure APIs, providing access to options, stocks, ETFs, and fixed income.
Traditional ETFs provide broad market exposure but generally offer limited flexibility to adjust the underlying portfolio holdings. As a result, investors typically hold the index weightings determined by the ETF’s methodology, which can be seen as a one-size-fits-all structure.1,2
Direct indexing is designed to address this by allowing investors to own and customize the individual companies within an index, rather than buying a pre-packaged fund.3 Historically, direct indexing strategies were primarily used by institutional and high-net-worth investors. Wallace Finance aims to close this gap by embedding direct indexing tools into its app, enabling users to modify the underlying securities in an index or ETF.
"Wallace Finance gives you the power of Wall Street in your pocket with expert tools and algorithms to manage the market your way," said Matt Baldwin, Founder of Wallace Finance. "We hear from investors all the time that they want diversification, but don’t like how a specific index is weighted. Or simply want to remove a company from an ETF. We created Wallace to solve this by allowing everyday investors to modify existing indexes and investment strategies or create their own in a simple, intuitive app. Building with Alpaca has allowed us to scale our vision and offer personalized investment strategies that were once unavailable to the average trader.”
By utilizing Alpaca’s Broker API, Wallace Finance can now provide access to US stocks and ETFs, where users can:
- Customize ETFs holdings by adding or removing specific companies from existing index strategies.
- Adjust weightings to favor specific sectors or high-conviction stocks.
- Start investing in fractional amounts, without the barriers of high share prices
"Alpaca is building the infrastructure that makes sophisticated investing accessible to all," said Yoshi Yokokawa, Co-founder and CEO of Alpaca. "By engineering core systems that help unlock market possibilities for our partners, we’re excited to support Wallace Finance as they offer a modern, personalized solution for investors."
Contact Alpaca
About Alpaca
Alpaca is a US-headquartered, self-clearing broker-dealer and a global leader in brokerage infrastructure APIs providing access to stocks, ETFs, options, fixed income, and crypto. Alpaca delivers embeddable finance solutions for tokenization, fully paid securities lending, high-yield cash, 24/5 trading, Shariah-compliant investing, and more. Today, Alpaca powers over 10 million brokerage accounts across hundreds of fintechs and institutions in 40+ countries with over $320M in funding. For more information, visit: alpaca.markets
About Wallace
Wallace is an AI-driven investing platform where retail investors can create, manage, and share hyper-personalized investing strategies with just a thought. For more information, visit: https://www.wallacefinance.io/
References
- Direct Indexing: What Is It and Who Should Invest? | etf.com
- Is direct indexing a better investment strategy than ETFs? | The National
- Benefits of Direct Indexing | BlackRock Advisor Center
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