When looking at a direct indexing portfolio, it is important to understand the predicted tracking error. This article describes why this metric is useful for your clients, and can help them understand how predicted tracking error differs from tracking difference and tracking error.

Historically available only to high-net-worth investors and institutions, direct indexing has become more accessible to mainstream investors, thanks to recent advances in technology along with lower trading costs. Learn how direct indexing allows an investor to customize their investments and provide more control over the portfolio.

With so many investment choices available today, it’s important that each investor selects the appropriate product mix for their portfolio. Learn more about the most common investment vehicles used to get access to index investing strategies, which typically allow for greater diversification and lower fees than actively managed strategies.

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.

30 years of innovation have made possible the next step in investing for your clients: Schwab Personalized Indexing™. Learn more about this evolutionary strategy from Schwab Asset Management CEO Omar Aguilar, PhD.

We live in a world where many people prefer that things be personally designed for them. It should be no different with investing. Learn about different approaches to customizing a portfolio, and how a customized portfolio can make a difference in long-term performance and investor pride of ownership.

Tracking error is one aspect of investing to be aware of; however, it shouldn’t be the only thing to focus on. A diversified and personalized portfolio can have some tracking error, yet still perform well under various circumstances. Learn more about how tracking error can impact a portfolio, and why there is often give-and-take within portfolios.

Omar Aguilar, PhD, CEO of Schwab Asset Management, shares his views on the growth of direct indexing solutions and addresses key advisor questions around tax optimization and portfolio implementation. He also explains why personalization can be a powerful tool in establishing an investor’s perception of value – and how personalized strategies such as direct indexing can help keep clients invested.