Traditionally, the only way most people could replicate the performance of a stock market index, such as the S&P 500, was to invest in a mutual fund or exchange-traded fund (ETF), rather than the individual stocks that comprise the index. However, technological advances and fractional share trading have made it easier and much less costly to invest directly in the underlying shares. This allows you to have a portfolio tailored to your needs and requirements and capitalize on strategies that can help you lower your taxes.