Schwab Personalized Indexing™

There's traditional index investing, and then there's personalized direct indexing.

Introducing Schwab Personalized Indexing.

Schwab Personalized Indexing takes index investing a step further. It's a separately managed account that offers a personalized direct indexing strategy and can be a core component of your portfolio.

Going beyond traditional index investing, like through exchange-traded funds (ETFs) and mutual funds, direct indexing allows you to own individual stocks that reflect the characteristics of the index. This provides transparency and allows for increased personalization—including tax-loss harvesting Tooltip aligned to your objectives.

Schwab Personalized Indexing starts with a Financial Consultant.

Find one near you

An index-based portfolio that can be personalized.

Designed to be a core component of your investments, Schwab Personalized Indexing starts with an equity portfolio that can be personalized to be consistent with your goals and personal values.

  • Customizable

    Select an index for the market exposure you prefer, including an environmental, social, and corporate governance (ESG) option. You can also exclude a limited number of stocks to further reflect your preferences.

  • Tax-Efficient

    Tax optimization seeks to minimize tax liabilities and have your portfolio potentially outperform the index on an after-tax basis.

  • Professionally Managed

    Portfolio managers at Schwab Asset Management leverage proprietary technology to optimize your portfolio and monitor it on a daily basis.

Optimized for tax-efficiency.

Schwab Personalized Indexing can serve as a tax-efficient foundation for your portfolio. With the ability to manage gains and losses at the individual holding level, this direct indexing strategy allows for automatic tax-loss harvesting and potentially greater annual after-tax returns, or tax alpha. Tooltip

Schwab Personalized Indexing offers four different strategies.

  • Schwab 1000 Equity

  • S&P SmallCap 600®

  • MSCI KLD 400 Social

  • MSCI EAFE International

What are the fees?

Schwab Personalized Indexing is a separately managed account with professional management. Fees start at 0.40% with a low minimum investment of $100K, making direct indexing more accessible than ever before. If you are an investment professional, visit Schwab Asset Management for more details.

FPO Cost Table for Schwab Personalized Indexing

FPO Cost Table for Schwab Personalized Indexing
  • Schwab Personalized Indexing
  • Minimum Investment
  • Schwab Personalized Indexing
    $100,000
  • Fees
  • Schwab Personalized Indexing
    First $2,000,000: 0.40%
    More than $2,000,000: 0.35%

Satisfaction Guarantee

At Schwab, we believe every investor deserves to work with a firm they can count on. Our commitment to your satisfaction is backed by a guarantee, and if for any reason you're not happy with Schwab Personalized Indexing, we'll refund your program fee from the previous quarter and work with you to make things right.*
 

*Refund requests must be received within 90 days of the date the fee was charged. Go to schwab.com/satisfaction to learn what's included and how it works.

Interested in learning more?

To provide you with personalized support, we need to know a little bit about you. Simply answer a few questions and a Schwab professional will reach out by email or phone.

We've got answers to your direct indexing questions.

Traditional index investing is a passive strategy designed to track the performance of an index—not try to beat it. Schwab Personalized Indexing may allow for the investor to possibly beat the underlying index on an after-tax basis through tax-loss harvesting and portfolio optimization. Portfolio managers monitor accounts on a daily basis and use proprietary technology to optimize portfolios and seek out potential tax-loss harvesting opportunities. However, the ability to realize tax benefits from tax-loss harvesting depends on a variety of factors, and there is no guarantee that a particular investor will definitively realize tax benefits.

Several differences exist between the Schwab Personalized Indexing separately managed account and index mutual funds and ETFs tracking the same or similar indexes. Most notably, index mutual funds and ETFs are pooled investment vehicles, typically with an investment objective to return the results of an index. An investor owns shares of the pooled investment, not the underlying securities, and therefore cannot modify or customize holdings in the fund. Unlike index mutual funds and ETFs, the Schwab Personalized Indexing separately managed account is designed to be more effective at harvesting losses because the investor owns a subset of individual securities that reflect the risk characteristics of a selected index. By combining the personalized tax-loss harvesting approach with the investor-specified stock exclusion(s), the account can better address the personalized needs of the investor. Note that ETFs and mutual funds are typically less expensive than a direct indexing separately managed account.

A Schwab Personalized Indexing separately managed account based on a broad underlying index could act as a core holding within an investment portfolio. Core holdings are investments that anchor a long-term portfolio and play the role of providing exposure to broad markets.

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