By now, most investors are aware of index investing. This is the process of choosing an investment that mirrors the portfolio of a given index.
For example, if you want your portfolio to mimic the returns of the S&P 500, then you can use one of several Index funds from well known companies to do so. This applies to just about every sector you can think of. If there is an investment idea, there is usually an index to track it.
They have grown in popularity because they are very inexpensive and also extremely efficient at tracking these targets.
Custom Indexing takes this a step further. It allows you similar exposure/similar inexpensiveness/similar tracking, but enables you to put your own tilt to an index.
In the case above, let's say you want similar returns to the S&P 500 but don't want any exposure to a various theme (tobacco, gambling, big oil etc). With an index fund, you cannot strip this out. You simply invest in what the index owns.
With a custom index strategy, you can personalize the index to make it fit your Ethos and thus better reflect your unique preferences and personalities.
I expect this strategy to grow in years to come and am happy to be a part of the movement. I believe the more in touch an individual is with the contents of their portfolio, the more likely they are to focus on long term growth and performance.
In the end, this is the goal we all look to achieve.