In the book "The Intelligent Investor", Benjamin Graham introduces "Mr. Market", a character who comes calling every day. When euphoric, he offers to buy shares at an exorbitant price; when gripped by pessimism, he is willing to sell his own holdings at a steep discount. Investors are free to listen to him, but they are under no obligation to accept his offers. Prices change every day; the underlying value of a business does not necessarily move at the same pace.

Warren Buffett, Graham's legendary disciple, has frequently returned to this metaphor when discussing investing. Yet perhaps his most accessible piece of advice has little to do with a multibillion-dollar deal.

In his 2013 letter to Berkshire Hathaway shareholders, Buffett devoted part of his discussion to how ordinary people should invest when they lack the time to become stock market experts. Rather than trying to predict which stocks will outperform, he advocated owning a broad collection of businesses through a low-cost index fund and allowing time to do much of the work.

That conviction is also reflected in the arrangements Buffett made for his own family. He instructed the trustee responsible for money left to his wife to invest 90% in a low-cost S&P 500 index fund. One of the world's most successful investors chose a remarkably simple principle for someone close to him: it is possible to participate in the growth of many businesses without constantly having to identify the best individual stocks.

When investing does not have to become a second job

As an economy grows wealthier, the way its people think about their financial future also changes. With rising incomes, savings are no longer intended solely as protection against unexpected expenses. They increasingly serve a broader purpose: building wealth over the long term.

According to UOB's ASEAN Consumer Sentiment Study 2026, 89% of Vietnamese respondents save more than 10% of their monthly income, the highest proportion among five ASEAN markets surveyed. Meanwhile, 63% allocate more than 10% of their annual income to investments. The appetite for long-term wealth accumulation is expanding alongside the economy.

At the macroeconomic level, this aspiration intersects with another need: businesses require long-term capital to invest in technology and expand production. The stock market can connect household savings with businesses, allowing the benefits of economic growth to become a foundation for family wealth.

Yet the desire to invest does not necessarily come with the time or expertise needed to manage a portfolio independently. Someone may want to own shares in promising companies while still devoting most of their day to work and family. Long-term investing therefore calls for convenient approaches that do not turn the stock market into a second job.

Individual stocks offer investors greater control over their decisions. Open-ended funds provide professional management, while exchange-traded funds (ETFs) offer exposure to index-tracking portfolios. Direct Indexing adds another option: investors own individual shares directly, while technology and investment professionals support portfolio allocation, monitoring and rebalancing according to a consistent set of rules.

A survey of 400 U.S. financial advisors published by FTSE Russell in September 2026 found that the proportion using Direct Indexing had risen from 33% to 41% over the previous year. Some 83% were either using the approach or planning to adopt it.

For Vietnam, Direct Indexing brings together direct share ownership and disciplined portfolio management. Rather than replacing individual stocks, open-ended funds or ETFs, the model could complement existing investment products, making long-term investing more accessible to a society with a growing capacity to accumulate wealth.

Bringing a new investment approach closer to everyday Investors

Making a modern investment model accessible to the wider public involves more than applying algorithms. The greater challenge is to turn methods that traditionally demand considerable knowledge, time and effort into an investment experience simple enough for people to sustain over many years.

Launched in August 2026, VPS Smart Indexing (VSI) is among the pioneering products applying Direct Indexing in Vietnam. Under VSI, clients directly own the shares in their portfolios, while VPS Securities Joint Stock Company manages their investments on their behalf according to their chosen strategies.

The product combines the expertise of investment professionals with quantitative technology, aiming to help investors establish and maintain the habit of making regular contributions towards long-term wealth accumulation.

How the model works was explained at an online discussion titled "Market Upgrade: A Turning Point Opening Up New Investment Opportunities", held in early October 2026 by VPS.

Responding to a question about allocating VND1 billion ($38,590) across a portfolio of 20 stocks, Le Thi Le Hang, CEO of Saigon Capital, explained that the money would not simply be divided equally among the holdings. Instead, portfolio weights are calculated based on each stock's contribution to risk, combined with an assessment of price trends, rather than being determined by fixed allocations.

The VSI01 model portfolio is reviewed and rebalanced monthly. When unusual developments affect an individual company or the broader market, investment professionals can conduct additional assessments and make adjustments outside the regular rebalancing schedule.

Algorithms handle tasks requiring extensive data processing and consistency, while investment professionals contribute experience and judgement when circumstances demand it. Both serve the same purpose: ensuring that portfolio management follows a defined methodology, rather than allowing every investment decision to be driven by emotional reactions to price movements.

VSI01 allows investors to start with VND50 million ($1,930), although VPS recommends an initial investment of at least VND200 million ($7,720) to help their actual portfolios track the model portfolio more closely. Together with a mechanism for regular additional contributions, this structure is designed for people seeking to build wealth gradually rather than simply pursuing short-term trading opportunities.

VSI will not be the only product applying Direct Indexing, nor is it intended to replace individual stocks, open-ended funds or ETFs. What is more significant is the decision by VPS, an established securities firm with a substantial brokerage presence and a large client base, to pursue this approach.

By committing resources to developing VSI, the company is demonstrating its confidence in the potential of Direct Indexing as a long-term wealth management approach, rather than merely another application of new technology.

For Direct Indexing to become a familiar investment choice, the market will need more time, trustworthy products and service quality proven through real-world experience.

Nevertheless, the involvement of established financial institutions such as VPS represents a meaningful step forward. It brings disciplined, rules-based investing closer to people who would rather devote their time to work and family, while allowing their savings to pursue a longer-term journey towards wealth accumulation.