Our approach to asset allocation
At Schwab Asset Management®, asset allocation isn’t just a concept—it’s a research-driven process designed to align investments with each client’s financial goals, risk tolerance and time horizon. It serves as the foundation of our model portfolios, helping to create diversified, well-balanced investment solutions tailored to clients’ unique needs.
Our guiding principles for advisor-focused model portfolios
Transparent: Simplify allocations to ensure they’re clear, easy to explain and free from unnecessary complexity.
Cost-efficient: Keep fees and expenses low to maximize the potential of clients’ investments.
Globally diversified: Create balance with portfolios that span geographies, asset classes and investment styles.
Designed for the long term: Prioritize sustained growth potential while managing short-term volatility with appropriate risk levels.
Disciplined and goal-oriented: Set realistic, measurable goals and use a systematic approach for evaluation and rebalancing to keep clients on track.
What sets us apart
Our asset allocation approach integrates three key elements to help your clients achieve their long-term goals: proprietary capital market expectations, a deep understanding of investor preferences and biases, and a team with expertise in multi-asset-class investment management.
Taking the long view
Capital market expectations offer key insights into potential market outcomes and are the foundation of any sound investment strategy. We craft our expectations using a balanced mix of data-driven analysis and expert insights from a wide range of sources. Although these forecasts typically have a 10-year horizon, they can evolve as market prices, interest rates or broader economic conditions shift.
Portfolios that keep investor behavior in mind
Understanding the behavioral side of investing and how each person reacts through different market cycles is essential to setting clients up for long-term success. At Schwab Asset Management, we’ve long championed a behavior-based investing approach to help keep investors on track toward their goals.
Learn about the foundations of our portfolio construction process
ABC asset allocation framework
Leverage our ABC asset allocation framework to deliver simple, scalable and cost-efficient portfolio solutions to your clients.
Model portfolios
Using the ABC asset allocation framework, our model portfolios cater to a variety of investor needs, offering flexibility in risk/reward exposures, design sophistication and cost.
Dedicated support
From model portfolio evaluations to asset allocation insights and resources, our team provides advisors with tailored support based on individual needs.