Learn about personalized indexing

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What is Schwab Personalized Indexing^®?

As the words of the onscreen sentence fly away, Polaroid photos appear. One shows a man enjoying a cup of coffee, another is of a man in a vintage car, and the third shows a woman holding brightly colored flowers.

Female narrator: Think about your car. Your clothes. Even the coffee you order. You can personalize them to reflect your style or your tastes.

The photos move away and a square wooden puzzle made of angular geometric shapes appears. A square piece is out of and to the left of the puzzle.

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Shouldn't index investing be personalized?

Narrator: Shouldn't you get the same level of personalization with your index investing?

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Index investing gives you broad market exposure and diversification.

Narrator: Traditional index investing, like through ETFs or mutual funds, gives you broad market exposure and a more diversified portfolio.

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But what if the securities don't align with your preferences?

Narrator: But what if some of the securities within a fund don't align with your values or your personal preferences?

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You can't remove securities.

Narrator: With traditional index funds, you can't remove securities to suit you.

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Or manage gains and losses at the individual holding level.

Narrator: And you can't manage gains and losses at the individual holding level to help improve tax efficiency either.

The wooden pieces slide away, and a digital tablet slides into view. After a moment, "Schwab Personalized Indexing^®" appears on the tablet's screen.

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Schwab Personalized Indexing^®

Narrator: We're taking index investing to the next level with Schwab Personalized Indexing^®.

On the tablet, the word "Personalized" disappears and is replaced by the same word but in a blue handwritten font.

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Schwab Personalized Indexing^®

The extent to which holdings can be personalized is subject to investment management guidance.

Own your tomorrow^®

Narrator: What makes Schwab Personalized Indexing different is in its name: a professionally managed, index-based portfolio that you can personalize.

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Choose the strategy that fits your investing goals.

Narrator: Here's how it works. You start by choosing an index-based strategy that gives you the market exposure you're looking for.

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Narrator: Then, because Schwab Personalized Indexing gives you the opportunity to own the individual stocks that reflect the characteristics of the index in a separately managed account . . .

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Exclude securities or industries that don't fit your preferences.

The extent to which holdings can be personalized is subject to investment management guidance.

Narrator: . . . you have the ability to exclude individual securities, or even entire industries, if you prefer.

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Narrator: So you get similar market exposure and diversification of an index fund—but customized to your preferences.

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Direct indexing is now accessible to more investors.

Narrator: This approach—known as direct indexing—has traditionally been available to large institutions and fund managers due to high minimums. But now, Schwab has made direct indexing accessible to more investors.

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Tax efficient

Narrator: Schwab Personalized Indexing has a lot to offer. It can also serve as a tax-efficient foundation for your portfolio.

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Manage gains and losses at the individual holding level.

Narrator: Because you own each security, gains and losses can be managed at the individual holding level with automated tax-loss harvesting.

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Narrator: This allows for tax optimization, which seeks to minimize tax liabilities to help your portfolio potentially outperform the index on an after-tax basis.

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Professionally Managed

Narrator: Experienced portfolio managers monitor your account on a daily basis and use proprietary technology to optimize portfolios and seek out potential tax efficiencies.

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Narrator: You'll also have visibility into your account. Your personal dashboard makes it simple to review account details and monitor your performance at a glance.

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Schwab Personalized Indexing^®

Customizable.

Tax-efficient.

Professionally managed.

Narrator: Customizable. Tax-efficient. Professionally managed. It's how Schwab Personalized Indexing takes index investing to the next level.

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To speak with a Financial Consultant, call 855-653-1959 or visit schwab.com/consultant.

Narrator: If you're ready for a more personalized portfolio, talk to a Schwab Financial Consultant about Schwab Personalized Indexing.

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Own your tomorrow^®

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