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Managed Account Select®

Managed Account Select®

Your financial picture becomes more complex as your assets grow. Take a more sophisticated approach to investing through Managed Account Select.

A separately managed account is a portfolio of individual securities managed on your behalf by a professional asset management firm. You own the individual securities, which can provide the ownership, control, and transparency you deserve. We’ll work with you to find the managed account that fits your needs.

Ready to take your portfolio to the next level?

Contact a Schwab Financial Consultant or call us at 866-855-9041.

When you invest in a separately managed account through Managed Account Select, you’ll enjoy these advantages:

You'll have access to an expansive range of investment strategies and the power to choose one focused strategy or to diversify across several asset categories.

Your account will be managed by the respected, carefully vetted third-party professional asset manager you choose, and Charles Schwab Investment Advisory, Inc. (CSIA)1 holds them all to rigorous, research-based quality standards.

Direct ownership of underlying securities lets you make adjustments—tax-loss harvesting or security or industry restrictions2—based on your full financial picture.

At every step of the way, you can work with a Schwab Consultant to help you find an appropriate solution to address your unique goals and needs.

You'll have a clear view of the individual securities you own, plus ready access to account details and trade information.

You can access the expertise of high-caliber asset managers with lower account minimums and at a competitive price, helping to keep more of your money working for you.

Find the strategy that's right for you 

When you invest through Schwab Managed Account Select, you can choose from a wide range of strategies, including:

  • Domestic and international equity strategies
  • Fixed income strategies, including bond ladders
  • Balanced strategies that include multiple asset classes

All strategies are managed by professional, third-party asset managers, who apply their unique insights, experience, and investment savvy on your behalf.

These strategies and asset managers undergo rigorous review by CSIA,1 which helps ensure that you have a variety of qualified asset managers to choose from.

Working together for you

As a Managed Account Select investor, you’ll be backed by a team committed to supporting your success:

  • Your Schwab Consultant, who gets to know your unique situation and recommends appropriate strategies
  • A third-party asset manager, who invests on your behalf per your chosen managed account strategy
  • CSIA,1 which evaluates and monitors the performance of asset managers and strategies

Managed accounts vs. mutual funds and ETFs

While mutual funds, exchange-traded funds (ETFs), and separately managed accounts each offer professional management and a wide range of investment strategies, there are distinct differences. Consider your unique circumstances and financial needs to determine which option best suits you.

Does it allow: Mutual funds ETFs Separately managed accounts
Ownership of underlying securities No No Yes
Daily transparency into portfolio holdings and transactions No Usually Yes
Tax-loss harvesting of underlying securities No No Yes3
Customization of portfolio contents No No Yes2
Portability of underlying holdings No No Yes
Potential for unwanted capital gains distributions Yes Rarely No

Requirements Mutual funds ETFs Separately managed accounts
Account funding Cash only Cash Cash or securities
Minimum investment at Schwab As low as $100 One share Equities: Typically $100,000
Fixed income: Typically $250,000
Balanced: Typically $250,000
Fee structure Flat asset-based fee
(Other fees such as transaction fees, operating expenses, and commissions [loads] may apply.)
Flat asset-based fee
(Trade commission may apply)
Tiered, asset-based fee4
(No trading or transaction fees)

Frequently asked questions about Managed Account Select

A managed account (or 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 with a mutual fund or exchange-traded fund, you directly own the individual securities instead of pooling your assets with other investors. Each separately managed account follows a focused strategy within a specific asset class or investment style.

Yes. The minimum investment to open a managed account at Schwab varies depending on strategy and asset manager. Typical minimum investments:

  • Equity strategies: $100,000
  • Fixed income strategies: $250,000
  • Balanced strategies: $250,000

Our asset-based fees are blended on a tiered scale and decline with additional assets.4

  • Fees for equity strategies start at 1.00%
  • Fees for fixed income strategies start at 0.65%
  • Fees for balanced and equity index strategies start at 0.95%
You may be able to take advantage of lower pricing by combining multiple Managed Account Select accounts within your household, provided they are of the same asset class.5

When you invest in a managed account, you individually own the underlying securities. This gives you more ability to make adjustments based on your specific needs or goals. Working with most asset managers,3 you can:
  • Exclude a particular security or industry from your account2
  • Manage tax implications and support tax efficiency through tax-loss harvesting
  • Elect to invest in environmental, social, and governance integration

No. Schwab believes in giving investors the freedom to choose from respected third-party investment management firms. You can select from more than 50 asset managers representing approximately 145 individual strategies.

Charles Schwab Investment Advisory, Inc. (CSIA) has a team of analysts who research, evaluate, and perform ongoing due diligence on the asset managers and strategies in Managed Account Select. In evaluating asset managers and strategies for Managed Account Select, both qualitative and quantitative analyses are conducted to provide a diverse array of strategies across multiple investment styles.

No. If you have an existing relationship with a Schwab Financial Consultant, you can continue to work with him or her to review, select, and monitor your managed account. Your Schwab Financial Consultant will communicate with your selected asset manager on your behalf.

Questions? We're ready to help.

Contact us today to discuss our range of managed accounts and whether they are right for you.