Schwab Personalized Indexing™

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

Engaging, upbeat music plays throughout.

Onscreen text: 
What is Schwab Personalized Indexing™?

As the words of the onscreen sentence disperses upward, 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 [off-screen]: Think about your car. Your clothes. Even the coffee you order. You can personalize them to reflect your style or your tastes.

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

Onscreen text: 
Shouldn't index investing be personalized?

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

The square puzzle slides away and is replaced by a wooden pie chart. The puzzle pieces, each of which is a different color, slide in and out of place.

Onscreen text: 
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.

The pie-chart puzzle moves to the center of the screen, but one piece separates from the rest and moves off to the right.

Onscreen text:
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?

The puzzle piece moves back into place. All the pieces briefly move away from each other but then snap back into place.

Onscreen text:
You can't add or remove securities.

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

The puzzle slides away, and new wooden pieces slide in to form a circle with a diagonal slash through it.

Onscreen text:
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; the Schwab logo and tagline are visible onscreen. After a moment, the words "Schwab Personalized Indexing™" appear on the tablet’s screen.    

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. Disclosures appear in small font at the bottom of the tablet.

Onscreen text: 
The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.
Own your tomorrow®

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

The tablet slides away, and four square wooden puzzles slide into view. Each puzzle is a different color and has a "Strategy label above it.

Onscreen text:
Strategy 1
Strategy 2
Strategy 3
Strategy 4
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.

The puzzles for Strategies 2, 3, and 4 fall away, and the Strategy 1 puzzle grows and moves to the center. One by one, most of the pieces pull away from the puzzle.

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…

Onscreen text:
Exclude securities or industries that don't fit your preferences.
The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.

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

The pieces return to reform and complete the puzzle again.

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

The puzzle then shrinks and falls away, and four Polaroid photos appear: a woman wearing a wetsuit and carrying a surfboard; an older woman smiling; a woman sitting on a surfboard in the water; and a man carrying a smiling young girl.

Onscreen text:
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 and high fees. But now, Schwab has made direct indexing accessible to more investors.

The Polaroids slide away, and several wooden puzzle pieces move across the screen, connected by a straight line. Some pieces move up and some move down; the line moves with each piece to take the form of a line graph.

Onscreen text:
Tax efficient

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

Some puzzle pieces shift up or down, changing the shape of the graph.

Onscreen text:
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.

The puzzle pieces slide away but the line, now straight again, remains. A triangle appears, and the line settles on the top point to form a teeter-totter. Two groups of puzzle pieces fall from above and settle on each end of the line. The line tilts back and forth before beginning to settle.

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.

The teeter-totter falls away, and new Polaroid photos appear, each showing two to four people in business attire and in an office setting.

Onscreen text: 
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.

The photos move away, and a digital tablet slides into view, displaying online account information.

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.

Three puzzle pieces appear, each with a label beside it.

Onscreen text: 
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.

The puzzle pieces and labels slide away. Sixteen different pieces appear and form a rectangular frame around the onscreen text.

Onscreen text:
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.

Some puzzle pieces slide out of view, and some move to form a complete square puzzle that turns blue and becomes the Schwab logo.

Schwab brand music plays.

Onscreen text:
Own your tomorrow®

DISCLOSURES:

This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.

Please refer to the Charles Schwab Investment Management, Inc. Disclosure Brochure for additional information.

Schwab Personalized Indexing is available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab Managed Account Services.

Portfolio Management for Schwab Personalized Indexing™ is provided by Charles Schwab Investment Management, Inc., dba Schwab Asset Management®, a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. ("Schwab"). Both Schwab Asset Management and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation.

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.

There are risks associated with any investment approach, and each Schwab Personalized Indexing strategy and equity market segment has its own set of risks based on client strategy selection and further customization.

Neither the tax-loss-harvesting strategy nor any discussion herein is intended as tax advice, and Schwab Asset Management does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to the Internal Revenue Service ("IRS") website at www.irs.gov for the consequences of tax-loss harvesting.

Strategies that use screening to exclude certain investments may not be able to take advantage of the same opportunities or market trends as strategies that do not use screens. There can be no assurance that the strategies will achieve their desired outcomes. Each investing strategy brings with it its own set of unique risks and benefits.

The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.

©2024 Charles Schwab & Co., Inc. ("Schwab").
All rights reserved. Member SIPC.
CC8254916 (1023-3CSD) (01/24)

 

Video Transcript

Learn about personalized indexing

Engaging, upbeat music plays throughout.

Onscreen text: 
What is Schwab Personalized Indexing™?

As the words of the onscreen sentence disperses upward, 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 [off-screen]: Think about your car. Your clothes. Even the coffee you order. You can personalize them to reflect your style or your tastes.

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

Onscreen text: 
Shouldn't index investing be personalized?

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

The square puzzle slides away and is replaced by a wooden pie chart. The puzzle pieces, each of which is a different color, slide in and out of place.

Onscreen text: 
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.

The pie-chart puzzle moves to the center of the screen, but one piece separates from the rest and moves off to the right.

Onscreen text:
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?

The puzzle piece moves back into place. All the pieces briefly move away from each other but then snap back into place.

Onscreen text:
You can't add or remove securities.

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

The puzzle slides away, and new wooden pieces slide in to form a circle with a diagonal slash through it.

Onscreen text:
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; the Schwab logo and tagline are visible onscreen. After a moment, the words "Schwab Personalized Indexing™" appear on the tablet’s screen.    

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. Disclosures appear in small font at the bottom of the tablet.

Onscreen text: 
The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.
Own your tomorrow®

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

The tablet slides away, and four square wooden puzzles slide into view. Each puzzle is a different color and has a "Strategy label above it.

Onscreen text:
Strategy 1
Strategy 2
Strategy 3
Strategy 4
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.

The puzzles for Strategies 2, 3, and 4 fall away, and the Strategy 1 puzzle grows and moves to the center. One by one, most of the pieces pull away from the puzzle.

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…

Onscreen text:
Exclude securities or industries that don't fit your preferences.
The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.

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

The pieces return to reform and complete the puzzle again.

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

The puzzle then shrinks and falls away, and four Polaroid photos appear: a woman wearing a wetsuit and carrying a surfboard; an older woman smiling; a woman sitting on a surfboard in the water; and a man carrying a smiling young girl.

Onscreen text:
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 and high fees. But now, Schwab has made direct indexing accessible to more investors.

The Polaroids slide away, and several wooden puzzle pieces move across the screen, connected by a straight line. Some pieces move up and some move down; the line moves with each piece to take the form of a line graph.

Onscreen text:
Tax efficient

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

Some puzzle pieces shift up or down, changing the shape of the graph.

Onscreen text:
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.

The puzzle pieces slide away but the line, now straight again, remains. A triangle appears, and the line settles on the top point to form a teeter-totter. Two groups of puzzle pieces fall from above and settle on each end of the line. The line tilts back and forth before beginning to settle.

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.

The teeter-totter falls away, and new Polaroid photos appear, each showing two to four people in business attire and in an office setting.

Onscreen text: 
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.

The photos move away, and a digital tablet slides into view, displaying online account information.

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.

Three puzzle pieces appear, each with a label beside it.

Onscreen text: 
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.

The puzzle pieces and labels slide away. Sixteen different pieces appear and form a rectangular frame around the onscreen text.

Onscreen text:
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.

Some puzzle pieces slide out of view, and some move to form a complete square puzzle that turns blue and becomes the Schwab logo.

Schwab brand music plays.

Onscreen text:
Own your tomorrow®

DISCLOSURES:

This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.

Please refer to the Charles Schwab Investment Management, Inc. Disclosure Brochure for additional information.

Schwab Personalized Indexing is available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab Managed Account Services.

Portfolio Management for Schwab Personalized Indexing™ is provided by Charles Schwab Investment Management, Inc., dba Schwab Asset Management®, a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. ("Schwab"). Both Schwab Asset Management and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation.

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.

There are risks associated with any investment approach, and each Schwab Personalized Indexing strategy and equity market segment has its own set of risks based on client strategy selection and further customization.

Neither the tax-loss-harvesting strategy nor any discussion herein is intended as tax advice, and Schwab Asset Management does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to the Internal Revenue Service ("IRS") website at www.irs.gov for the consequences of tax-loss harvesting.

Strategies that use screening to exclude certain investments may not be able to take advantage of the same opportunities or market trends as strategies that do not use screens. There can be no assurance that the strategies will achieve their desired outcomes. Each investing strategy brings with it its own set of unique risks and benefits.

The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.

©2024 Charles Schwab & Co., Inc. ("Schwab").
All rights reserved. Member SIPC.
CC8254916 (1023-3CSD) (01/24)

 

Introducing Schwab Personalized Indexing.

Schwab Personalized Indexing takes index investing a step further. It's a separately managed account that offers a customizable 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 lets you own individual stocks that reflect the characteristics of the index. This gives you greater control and allows for increased personalization.

Contact your Schwab Financial Consultant or connect with us to learn more.

Let's talk

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

    Choose from four index-based strategies for the market exposure you prefer, with the ability to exclude individual stocks or industry categories.

  • Tax-Efficient

    Tax optimization seeks to minimize tax liabilities to help 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 daily.

Customization to fit your needs.

  • Select from four index-based strategies: large U.S. companies, small U.S. companies, ESG-focused, and international.

  • Exclude individual stocks that don't align with your goals or personal preferences.

  • Exclude industries Tooltip for greater personalization over your investment.

  • Use your personal dashboard to easily view account details and monitor performance compared to the benchmark index.

Tax optimization aligned to your objectives.

Schwab Personalized Indexing could serve as a tax-efficient foundation for your portfolio.

With the ability to manage gains and losses at the individual holding level, it allows for automatic tax-loss harvesting and potentially greater annual after-tax returns, or tax alpha. Tooltip

Explore our four index-based 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 on 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%

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.

Make your portfolio more tax efficient

Looking to become a tax-smart investor? Schwab can help. Discover how thoughtful tax planning can lead to improvements in after-tax returns of your portfolio.

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 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 separately 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.

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.

  • Ready to get started with Schwab Personalized Indexing?

    Talk with a Schwab Financial Consultant to learn more.

  • Already have a Schwab Financial Consultant?

    Talk to your Financial Consultant to learn more about Schwab Personalized Indexing.

We're here to help.