Introducing Schwab Personalized Indexing™

Your clients can now have a professionally managed strategy that can be tax efficient and customized as a core component of their portfolio.

We’re going beyond index investing

Schwab Personalized Indexing takes index investing a step further. It's a separately managed account that offers a personalized direct indexing strategy that can be a core component of your client's portfolio. This strategy provides transparency and tax-loss harvesting aligned to your clients objectives.

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An index-based portfolio your clients can personalize

Schwab Personalized Indexing is designed to be a core component of your client’s investments. It gives them an equity portfolio that can be shaped to be consistent with their goals and personal values.

Customizable

  • You and your client select an index for the core exposure they want, including environmental, social, and corporate governance (ESG).
  • Your client can also exclude a limited number of stocks to further reflect their preferences.

 

Tax efficient

  • Tax-loss harvesting seeks to minimize tax liabilities.
  • There is the potential to outperform the index on an after-tax basis, thanks to tax-loss harvesting.

 

Professionally managed

  • Portfolio managers leverage proprietary technology to optimize your client’s portfolio and monitor it on a daily basis.

Available Strategies

We offer three Schwab Personalized Indexing strategies to choose from:

Schwab 1000 Equity

Designed to provide access to the 1,000 largest U.S. companies covering approximately 90% of total U.S. stock market capitalization.

S&P Small Cap 600®

Designed to measure the performance of companies with an unadjusted market cap of $750M to $3.3B that meet investability and financial viability criteria.

MSCI KLD 400 Social

Designed to be a capitalization-weighted index of U.S. securities that provides exposure to companies with outstanding ESG ratings and excludes companies whose performance has had negative social or environmental impacts.

Tax efficient

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

Tax efficient

Resources

Direct indexing

Many investors focus solely on pre-tax returns and underappreciate the importance of considering after-tax returns. Learn how tax alpha can be achieved via the management of gains and losses in an investment portfolio with the objective to minimize the tax impact to the investor.
Financial planning

When looking to transfer large amounts of assets to future generations, consider selling assets to an intentionally defective grantor trust (IDGT) to potentially create greater tax savings than other gifting strategies.

Ready to talk?

Find your regional representative who can answer any questions you have about Schwab Personalized Indexing and the SMAs we offer.