President Donald Trump’s latest financial disclosure has drawn attention for its sheer scale: thousands of stock trades, over $1 billion in crypto income, golf revenue, book royalties, all crammed into a filing that ran to 927 pages this year—compared with eight pages for Barack Obama’s final disclosure and 11 for Joe Biden’s. The optics practically invite suspicion: How does a sitting president buy and sell Nvidia, Apple, and Microsoft on the same day, sometimes dozens of times, without personally calling the shots?
But according to people who actually build the infrastructure behind high-volume, tax-optimized investing, a different picture emerges; those numbers seem pretty normal. What looks from the outside like either chaos or manipulation looks, from the inside, like an account structure that’s become increasingly common and accessible well outside the Oval Office. Trump’s 2025 financial disclosure, much like a review of his previous disclosure in March, is so multifaceted that index-based experts say it has the hallmarks of what it looks like when you have overlapping and automated portfolio-management strategies.
A direct indexing strategy
When Trump released his previous quarterly disclosure in March, many on social media including Sen. Elizabeth Warren alleged that the president and his family were benefiting from Trump holding a seat in the Oval Office. In a post on X at the time, the president’s son Eric said his father’s investments are held in accounts managed by third-party financial institutions with sole authority “over all investment decisions, including asset allocation, trading, rebalancing, and portfolio management. Investments are executed and allocated through automated, model-based portfolios and direct indexing strategies administered entirely by those firms.” The Trump Organization did not yet respond to Fortune’s requests for comment.
While he was responding to people calling out the president’s alleged market manipulation, Eric’s post corroborated two things today: his father’s comments when asked about it this morning (“I don’t get involved in my personal—we have funds that run my money,” adding that his money managers operate what he called “a blind account,” and that “I never speak to any of the people that run the money. But they’re big institutions, and they invest in whatever they invest in.”) and what people who engage in direct indexing strategies have presumed all along.
For Mo Al Adham, founder and CEO of the direct-indexing platform Frec, Eric’s post confirmed his own team’s analysis after an earlier 2026 disclosure showed roughly 3,700 trades in a single quarter. Taking to LinkedIn to break down the numbers, Al Adham said this is nothing abnormal.
“We kind of reached the conclusion that it is most likely a direct indexing strategy,” Al Adham told Fortune about his team’s analysis of the March disclosure filing. “There were some patterns that pointed to the fact that it is most likely … a direct indexing, tax-loss-harvesting type strategy.”
The trade count itself wasn’t the anomaly he expected it to be. “We looked at our own accounts and how often they trade within a certain quarter, and it turns out that it’s right in the sweet spot,” he said. “We usually trade between 500 [and] 1,000 times every quarter.” Scaled up across account sizes, he said, “we see a typical direct indexing account creates between 500 to 2,500 trades per quarter, and then seeing volumes above 3,000 wouldn’t be surprising to us, and we had about 3,700 at the time. It also depends on which index you’re in: the Russell 1000, which has more positions, versus the S&P 500, which has less positions.”
What convinced his team it wasn’t a person picking stocks was the timing. “There were days where there were big drawdowns in the market, and the trades happened during those drawdowns, and they happened for stocks that were kind of correlated together,” Al Adham said. “There was one day … where there was a big tech drawdown, and we saw Nvidia and Apple and other kind of correlated stocks being sold at the same time, right? And that kind of is a signal to us that, okay, that’s what our algorithm would also do when you’re rebalancing.”
Digging further into that same filing, Al Adham’s team found what he described as a “distinct split in trading behavior,” a large bloc of systematic, rules-based activity alongside a smaller set of ad hoc trades. “The solicited trades seem to contain the bulk of the systematic activity, showing a consistent pattern that aligns with a standard direct-indexing rebalancing day,” he said, noting his team also flagged what looked like identical trades executed across multiple accounts on the same day, which are consistent, in his read, with one manager running several linked accounts rather than one person trading on impulse.
“We saw very large trades taking place within Microsoft, Amazon, and Meta, and it indicated active risk reduction and tax loss harvesting,” he added. “It’s obviously very difficult to say things definitively … but the sheer breadth of the transactions does suggest an automated, systematic trading strategy.”
Who used to use direct indexing?
Direct indexing means owning the individual stocks that make up an index, like the S&P 500 or the Russell 1000, rather than buying the index through a mutual fund or ETF. It’s not new, but for decades it was, in practice, available only to the ultrawealthy.
“You may want exposure to a certain index. People usually start with that. They say, ‘Well, I want the S&P 500’ or ‘I want the Russell 1000,’” Al Adham explained. “Then how you buy it is the question. You can buy it as a mutual fund, you can buy it as an ETF, and then you can buy it as a direct index.
“Direct index has always been sort of out of reach for most people, because it required very high minimums, and also the fees were very high for it, but it has a lot of advantages. You can customize it, you can tweak it. Maybe your spouse works at Uber, so you don’t want to own Uber [when] you already have a lot of exposure to that. Or maybe you want to add a factor tilt to it because you feel like the market is too frothy. It also lets you vote the individual shares. Not every platform lets you do that, but with an ETF, you can’t really call Vanguard and say, ‘Can you vote my Tesla shares a certain way?’ A direct index, in my view, is how index investing should have been done from day one, except a long time ago it was expensive, it was clunky, it was operationally challenging, and now we’ve gotten to a point in the tech cycle that it’s possible to do it at scale.
“So it sounds like the president is taking advantage of it, as should everyone else, in my opinion.”
Direct indexing “used to be exclusive only to family offices and to ultrahigh-net-worth individuals,” he explained, given that the minimums historically ran into the millions. “We’re not the only provider that does it,” he said of Frec, “but we’re one of the few that does it direct to retail, without having to hire a manager to manage that account for you.
“We’ve also done it at very low fees, fees that are similar to ETF fees, so you’re not paying a big premium for it, and at lower minimums, too. These minimums used to be like a million-plus, and now, on track, it’s $20,000 to get started. So I do think it’s a product worth taking a look at if you’re deploying money in the market and you want market returns while also generating capital losses.”
This seems to be the case for high-net-worth individuals. According to UBS’s Global Wealth Report 2026, liquid, investable assets like cash, securities, and direct holdings, have grown steadily as a share of net worth over the past decade-plus: In the U.S., liquid assets rose from 38% of personal net wealth in 2011 to 47% in 2025, the highest share the bank tracks anywhere in the world. UBS also flagged a fast-growing population of adults with $5 million to $100 million in net assets, the exact bracket direct indexing and tax-loss harvesting are built for. The bank says roughly 7 million people worldwide belong in this group, with more than 4 million of them in the U.S. This number expanded at a compound annual growth rate north of 7% for the past 25 years.
An AI advisor sees the same lines
Manish Jain, CFA, cofounder and CEO of Mezzi—an AI-powered, flat-fee registered investment advisor—described how his platform treats concentrated positions. Mezzi flags any client whose holdings exceed a set threshold in a single security or sector: “We have specific rules around what is overconcentrated in an individual security or in an individual sector of equity markets,” Jain said. “If a customer was more than 10% in crypto, we would flag them as being overly concentrated in crypto.”
Jain said wealthy people, especially founders, might often end up holding concentrated positions they didn’t necessarily set out to hold. “When your wealth is tied to entrepreneurial endeavors, founding businesses, starting businesses … the fact is that a vast majority of your wealth is going to be concentrated in those revenue streams, and it might be multiple revenue streams,” he said, citing Elon Musk’s holdings across Tesla, SpaceX, and Neuralink as an example. “Founders, company people that are in the hundreds of millions of dollars of wealth and beyond … have different wealth and diversification needs and abilities than those that have been working professionals for a long period of time.”
If there’s a legitimate critique buried in all this, Al Adham’s own analysis points less at the trading pattern itself and more at the fact that the disclosure format doesn’t distinguish between a managed account and a discretionary one—leaving room for exactly the kind of suspicion the filing has generated.
He drew a comparison to how his own platform handles clients who legally can’t make self-directed trades, such as people who work at firms like Jane Street. “We basically send a letter to the compliance department, saying, ‘Hey, this is just to confirm that this employee has no discretion over this account. It’s automated,’” he said. “The employer is then comforted that this person isn’t using some insider information or some proprietary information to trade.” Applied to a presidential disclosure, he said, “maybe some more clarification in the disclosures would be helpful to calm folks down. A simple flag or a field that would say, is this managed or is this an individual, solicited, or unsolicited trade.
“My guess would be most of this would be like a managed, automated trade.” He added: “Obviously, the president isn’t subject to that, but maybe some more clarification in the disclosures would be helpful.
“It is also impossible to think of the president making 63 trades a day, or being aware of each one.”
