If you’ve ever dreamed of having your own private ETF, you’re not alone. Many investors are drawn to the idea of a customized, exclusive index fund–one that mirrors the benefits of an index ETF while avoiding the inefficiencies of pooled investments. But here’s the reality: there’s no such thing as a truly “private ETF”. The structure of ETFs inherently involves pooled ownership and public market trading. However, with direct indexing, you can achieve the same exposure and flexibility as an ETF without the constraints of a pooled fund. In fact, institutional direct indexing offers a path to a highly customized index experience–essentially providing the benefits of what you might think of as a “private ETF. Why Not Just Use ETFs? ETFs (Exchange-Traded Funds) are widely used because they provide diversification and cost efficiency. But ETFs come with trade-offs inherent to pooled structures. These inefficiencies include: Customization Limits: An ETF tracks a predefined index. You can’t tweak the holdings to align with personal preferences or goals. Forced Distributions: ETFs distribute capital gains that you can’t control, which may lead to unexpected tax liabilities. Investment Advisor Fee: