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ABC asset allocation framework

The ABC asset allocation framework from Schwab Asset Management® offers a straightforward, scalable and cost-efficient solution for asset allocation. With combinations of low-cost passive, strategic beta and actively managed strategies, our building block approach adapts to fit a range of client goals, objectives, risk tolerances and circumstances.

A flexible, cost-efficient approach

Watch this video to learn how our framework can help you implement personalized portfolio solutions that are easy to explain to your clients and aligned with your preferred time commitment and comfort level in managing investments.

Narrator: Investors are on a personal journey.

Narrator: For advisors, there's a lot to consider when helping clients choose a portfolio path. Goals, biases, appetites for risk. It can be difficult to cover with limited time.

Narrator: What if constructing portfolios were a straightforward process? What If it could be as simple as A+B+C?  

Narrator: We've developed a low-cost asset allocation framework that can be adjusted for complexity and risk preferences and save you valuable time.

Narrator: Because this is about building relationships that last.

Narrator: Helping advisors build personalized portfolios that clients can understand and stick with, through all kinds of seasons, week to week, month to month, year to year.

Narrator: Behind the science and math, simple elements come together to form a straightforward framework. One that you can adapt, flex, and stick with through all seasons.

Narrator: By offering clear pathways that are designed to be tailored to individual needs and tendencies, complexity gives way to simplicity.

Narrator: This is our straightforward approach to portfolio construction: one that lets you build for staying power.

Disclosures:

Information provided here represents Schwab Asset Management's emerging thoughts on portfolio construction, and changes may occur in the future as Schwab Asset Management conducts additional research. As a result, future allocations may or may not be materially different.

This information should not be relied upon as investment advice, research, or a recommendation by Schwab Asset Management regarding the use or suitability of the model portfolio allocations. This information is intended for use only by third party financial advisors, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for their own clients. Such financial advisors are responsible for making their own independent judgment as to how to use this information, and only clients and their advisors know enough about their financial circumstances to make investment decisions. Schwab Asset Management does not have investment discretion over or place trade orders for any portfolios or accounts derived from this information. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results.

This information provided here is for general informational purposes only, and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc. Schwab Asset Management is a subsidiary of The Charles Schwab Corporation.
Video Transcript

Portfolio construction reimagined

Narrator: Investors are on a personal journey.

Narrator: For advisors, there's a lot to consider when helping clients choose a portfolio path. Goals, biases, appetites for risk. It can be difficult to cover with limited time.

Narrator: What if constructing portfolios were a straightforward process? What If it could be as simple as A+B+C?  

Narrator: We've developed a low-cost asset allocation framework that can be adjusted for complexity and risk preferences and save you valuable time.

Narrator: Because this is about building relationships that last.

Narrator: Helping advisors build personalized portfolios that clients can understand and stick with, through all kinds of seasons, week to week, month to month, year to year.

Narrator: Behind the science and math, simple elements come together to form a straightforward framework. One that you can adapt, flex, and stick with through all seasons.

Narrator: By offering clear pathways that are designed to be tailored to individual needs and tendencies, complexity gives way to simplicity.

Narrator: This is our straightforward approach to portfolio construction: one that lets you build for staying power.

Disclosures:

Information provided here represents Schwab Asset Management's emerging thoughts on portfolio construction, and changes may occur in the future as Schwab Asset Management conducts additional research. As a result, future allocations may or may not be materially different.

This information should not be relied upon as investment advice, research, or a recommendation by Schwab Asset Management regarding the use or suitability of the model portfolio allocations. This information is intended for use only by third party financial advisors, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for their own clients. Such financial advisors are responsible for making their own independent judgment as to how to use this information, and only clients and their advisors know enough about their financial circumstances to make investment decisions. Schwab Asset Management does not have investment discretion over or place trade orders for any portfolios or accounts derived from this information. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results.

This information provided here is for general informational purposes only, and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc. Schwab Asset Management is a subsidiary of The Charles Schwab Corporation.

Building blocks to match your clients’ needs

The framework offers three options for portfolio implementation. Begin with a diversified, low-cost core allocation and then add degrees of portfolio complexity when it makes sense, all in an easy and scalable way.

a

A portfolios

Start with the basics, creating a low-cost core by allocating traditional cap-weighted indexes.

a+b

A+B portfolios

Expand the opportunity set by incorporating strategic beta, value, growth and other targeted exposures.

a+b+c

A+B+C portfolios

Add actively managed exposures that can increase diversification, customize solutions to meet client needs, or both.

How we support advisors

In this video, Jake Gilliam shares how Schwab Asset Management is helping meet advisor needs with tailored asset allocation insights and resources.

Learn more about our framework

advisor brochure

Advisor brochure

Read more about how our ABC asset allocation framework can help you build client portfolios that stand the test of time.

Review brochure
whitepaper

White paper

Explore our ABC asset allocation framework in more detail, including a guide to selecting the optimal portfolio option for each of your clients.

Access white paper
Client brochure

Client brochure

Lead clients through our building block approach and how it can help them build a portfolio with staying power.

Download brochure

Consult with our professionals

Reach out to us for objective insights on portfolio design, or request a portfolio analysis to help you refine your strategy.

Learn about models Contact us

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

Information provided here represents Schwab Asset Management®'s emerging thoughts on portfolio construction, and changes may occur in the future as Schwab Asset Management conducts additional research. As a result, future allocations may or may not be materially different.

This information should not be relied upon as investment advice, research, or a recommendation by Schwab Asset Management regarding the use or suitability of the model portfolio allocations. This information is intended for use only by third party financial advisors, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for their own clients. Such financial advisors are responsible for making their own independent judgment as to how to use this information, and only clients and their advisors know enough about their financial circumstances to make investment decisions. Schwab Asset Management does not have investment discretion over or place trade orders for any portfolios or accounts derived from this information. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results.

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

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