Investing, tailored.
With a separately managed account (SMA), your portfolio is managed by experienced professionals and you can add a degree of personalization according to your preferences.
Why consider an SMA?
Separately managed accounts are built to address a variety of investing objectives, are managed with discipline, and are structured to provide clear visibility into what you own. With an SMA, you have a customizable alternative to mutual funds and ETFs.
Customization & choice
Choose a strategy aligned to your goals, and personalize further based on income needs, risk tolerance, and values.1
Tax efficiency
Help manage gains and losses with tax-efficient strategies like tax-loss harvesting.
Ownership & transparency
With direct ownership of each security, receive clear reporting on holdings, transactions, and performance.
Guided by research. Managed with discipline.
An SMA gives you access to experienced portfolio managers who implement defined, research-driven strategies. Portfolios are monitored as market conditions change to help stay aligned with the stated investment objective of the strategy you've selected.
Beyond one-size-fits-all investing.
Understanding the differences between SMAs, mutual funds, and ETFs can help you determine which approach best aligns with your goals. SMAs are often used within larger or more complex portfolios where customization, transparency, and tax-efficiency play a more central role.
SMAs
| Feature | ETF | Mutual Fund | SMA |
| Customization | No | No | Yes* |
| Tax efficiency | Medium | Low | High |
| Transparency | Medium/High | Low | Full visibility |
| Ownership | Fractional share of pooled fund** | Fractional share of pooled fund | Direct ownership of each security |
| Professional management | Actively or passively managed on behalf of all shareholders | Actively or passively managed on behalf of all shareholders | Actively managed, but each investor directly owns the individual securities |
| Minimum investment | No minimum; can own as few as one share | Low/Medium; minimums vary by share-class | High; while some minimums may be as low as $25,000, still higher than most mutual fund minimums |
Start a conversation with a Schwab investment professional.
Complete the form and we will follow up by email or phone. If you are already a Schwab client, reach out directly to your Financial Consultant to discuss SMAs.
Common questions about separately managed accounts
A separately managed account is a portfolio of individual securities, such as stocks or bonds, that is managed on your behalf by a professional asset management firm. Unlike a mutual fund or exchange-traded fund, you directly own the individual securities. Each SMA is designed to follow a specific asset class or achieve a targeted investment objective.
When you invest in a managed account, you own the underlying securities. This provides you with the ability to request adjustments based on your specific needs or goals, such as:
- Excluding a particular security or industry from your account.2
- Supporting tax efficiency through tax-loss harvesting. Note: Before executing any tax-loss harvesting strategy, ensure you understand the technicalities of the wash-sale rule.
- Aligning with your personal values.
We know the power of choice is important; having the freedom to choose from separately managed accounts means greater potential to meet your specific investing needs and goals. A Schwab investment professional can work with you to assess your financial needs and recommend portfolios that may be appropriate for you.
Fees and minimums
| Strategy | Minimum Investment | Starting fees* |
| Equity - Income | $100,000 |
0.90% (Dividend growth) 0.80% (Balanced income) |
| Tactical diversification |
$100,000 (brokerage & IRA) $25,000 (qualified ERISA) |
0.95% |
| Fixed income | $250,000 |
0.55% (Active & taxable bond ladder) 0.35% (Municipal bond ladder) |
| Equity - Tax-efficient | $100,000 |
0.40% (Up to $2M) 0.35% (Over $2M) |
| Strategic diversification** | $25,000 | 0.90% |
| Third-party managed strategies |
$100,000 (most equity) $250,000 (most fixed income & balanced) |
1.00% (Equity) 0.95% (Balanced & direct index) 0.65% (Other fixed income) 0.45% (Municipals) |
