Amid record-breaking IPO activity led by companies like Anthropic and OpenAI, Canadian fintech Questrade is responding with a new custom indexing tool that provides investors greater portfolio control without sacrificing diversification.
- Custom indexing enables fee-free personalized ETF portfolios.
- Launch timed with blockbuster IPOs from Anthropic and OpenAI.
- Private markets feature to offer pre-IPO shares trading.
What happened
Questrade, a leading Canadian digital investing platform, has launched a custom indexing feature allowing retail investors to build and manage their own ETF strategies without fees. This move gives users the ability to adjust their portfolio exposure away from highly concentrated stocks while maintaining broad market diversification.
This new product comes as the market anticipates several blockbuster IPOs, including from AI companies Anthropic and OpenAI, which could significantly impact traditional indexes. Additionally, Questrade is preparing to roll out a private markets capability that facilitates secondary market trading of shares in private companies prior to their public listings.
Why it matters
The launch addresses long-standing concerns about portfolio concentration risks, especially as the largest tech stocks—the so-called Magnificent Seven—represent a disproportionately large share of benchmark equity indexes. Investors who want more nuanced control had limited options until now.
By enabling custom indexing, Questrade provides a middle ground: investors can tailor their holdings to reflect specific market views or avoid overrepresented sectors without abandoning the benefits of ETF diversification. This innovation enhances investor autonomy and aligns with broader shifts in retail investing preferences.
What to watch next
Furthermore, the forthcoming private markets feature could transform access to pre-IPO shares, setting Questrade apart from competitors like Wealthsimple by operating more like a secondary marketplace. Market response to this development, especially among advanced retail investors seeking early exposure to high-profile IPOs, will be critical to observe.