Schwab Personalized Indexing™

There's traditional index investing, and then there's personalized direct indexing.

Introducing Schwab Personalized Indexing.

Schwab Personalized Indexing takes index investing a step further. It's a separately managed account that offers a customizable direct indexing strategy and can be a core component of your portfolio.

Going beyond traditional index investing, like through exchange-traded funds (ETFs) and mutual funds, direct indexing lets you own individual stocks that reflect the characteristics of the index. This gives you greater control and allows for increased personalization.

Contact your Schwab Financial Consultant or connect with us to learn more.

Let's talk

An index-based portfolio that can be personalized.

Designed to be a core component of your investments, Schwab Personalized Indexing starts with an equity portfolio that can be personalized to be consistent with your goals and personal values.

  • Customizable

    Choose from four index-based strategies for the market exposure you prefer, with the ability to exclude individual stocks or industry categories.

  • Tax-Efficient

    Tax optimization seeks to minimize tax liabilities to help your portfolio potentially outperform the index on an after-tax basis.

  • Professionally Managed

    Portfolio managers at Schwab Asset Management leverage proprietary technology to optimize your portfolio and monitor it daily.

Customization to fit your needs.

  • Select from four index-based strategies: large U.S. companies, small U.S. companies, ESG-focused, and international.

  • Exclude individual stocks that don't align with your goals or personal preferences.

  • Exclude industries Tooltip for greater personalization over your investment.

  • Use your personal dashboard to easily view account details and monitor performance compared to the benchmark index.

Tax optimization aligned to your objectives.

Schwab Personalized Indexing could serve as a tax-efficient foundation for your portfolio.

With the ability to manage gains and losses at the individual holding level, it allows for automatic tax-loss harvesting and potentially greater annual after-tax returns, or tax alpha. Tooltip

Explore our four index-based strategies.

  • Schwab 1000 Equity

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

  • S&P SmallCap 600®

    Designed to capture representation of the small-cap segment of the U.S. equity market.

  • MSCI KLD 400 Social

    Designed to capture exposure to companies with outstanding ESG ratings and excludes companies whose performance has had negative social or environmental impacts.

  • MSCI EAFE International

    Designed to capture large- and mid-cap representation of developed markets Tooltip around the world, excluding the U.S. and Canada. It is composed of equities across countries in Europe, Australasia, and the Far East.

What are the fees?

Schwab Personalized Indexing is a separately managed account with professional management. Fees start at 0.40% with a low minimum investment of $100K, making direct indexing more accessible than ever before. If you are an investment professional, visit Schwab Asset Management for more details on personalized indexing.

FPO Cost Table for Schwab Personalized Indexing
  • Schwab Personalized Indexing
  • Minimum Investment
  • Schwab Personalized Indexing
    $100,000
  • Fees
  • Schwab Personalized Indexing
    First $2,000,000: 0.40%
    More than $2,000,000: 0.35%

Interested in learning more?

To provide you with personalized support, we need to know a little bit about you. Simply answer a few questions and a Schwab professional will reach out by email or phone.

We've got answers to your direct indexing questions.

Traditional index investing is a passive strategy designed to track the performance of an index—not beat it. Schwab Personalized Indexing may allow for the investor to possibly beat the underlying index on an after-tax basis through tax-loss harvesting and portfolio optimization. Portfolio managers monitor accounts separately on a daily basis and use proprietary technology to optimize portfolios and seek out potential tax-loss harvesting opportunities. However, the ability to realize tax benefits from tax-loss harvesting depends on a variety of factors, and there is no guarantee that a particular investor will definitively realize tax benefits.

Several differences exist between the Schwab Personalized Indexing separately managed account and index mutual funds and ETFs tracking the same or similar indexes. Most notably, index mutual funds and ETFs are pooled investment vehicles, typically with an investment objective to return the results of an index. An investor owns shares of the pooled investment, not the underlying securities, and therefore cannot modify or customize holdings in the fund. Unlike index mutual funds and ETFs, the Schwab Personalized Indexing separately managed account is designed to be more effective at harvesting losses because the investor owns a subset of individual securities that reflect the risk characteristics of a selected index. By combining the personalized tax-loss harvesting approach with the investor-specified stock exclusion(s), the account can better address the personalized needs of the investor. Note that ETFs and mutual funds are typically less expensive than a direct indexing separately managed account.

A Schwab Personalized Indexing separately managed account based on a broad underlying index could act as a core holding within an investment portfolio. Core holdings are investments that anchor a long-term portfolio and play the role of providing exposure to broad markets.

Satisfaction Guarantee

At Schwab, we believe every investor deserves to work with a firm they can count on. Our commitment to your satisfaction is backed by a guarantee, and if for any reason you're not happy with Schwab Personalized Indexing, we'll refund your program fee from the previous quarter and work with you to make things right.*
 

*Refund requests must be received within 90 days of the date the fee was charged. Go to schwab.com/satisfaction to learn what's included and how it works.

  • Ready to get started with Schwab Personalized Indexing?

    Talk with a Schwab Financial Consultant to learn more.

    Find one near you

  • Already have a Schwab Financial Consultant?

    Talk to your Financial Consultant to learn more about Schwab Personalized Indexing.

We're here to help.