Direct indexing has emerged as a powerful alternative, giving investors the transparency and control required to eliminate greenwashing entirely. This means a massive mining conglomerate can still sneak into an ethical portfolio if its fossil fuel revenue falls just below that arbitrary threshold. Enter Direct Indexing: True CustomisationAdvertisementDirect indexing completely flips this broken model on its head. Direct IndexingTo understand why direct indexing is systematically superior for ethical compliance, it helps to contrast the two models side-by-side. Feature Standard Ethical ETFs Direct Indexing Portfolios Asset Ownership You own a unit in a trust.