Schwab Announces New Personalization and Digital Capabilities for Schwab Personalized Indexing™
Charles Schwab has announced significant enhancements to its Personalized Indexing service, providing clients with advanced portfolio customization options and improved digital capabilities. Retail clients can now exclude individual stocks and entire industries, guided by a predictive tracking error tool. A new digital dashboard offers real-time insights into account values and tax-loss harvesting performance. The service, launched in April 2022, requires a minimum investment of $100,000, lower than many competitors. These updates aim to enhance user experience and differentiate Schwab in the direct indexing market.
- Enhancements to Schwab Personalized Indexing improve portfolio customization options.
- New digital dashboard provides real-time performance insights for clients.
- Lower investment minimum of $100,000 makes the service accessible compared to competitors.
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Personalization takes a step forward with new enhancements
Clients in Schwab Personalized Indexing can now exclude more individual stocks as well as entire industries and sub-industries. The maximum number of exclusions will be guided by a predictive tracking error tool that provides an indication of how a portfolio is expected to perform relative to its reference index.
Retail clients also now have access to a personal, account-level digital dashboard through their Schwab.com account overview that provides a real-time view of their account value. The dashboard also highlights the performance of Schwab Personalized Indexing’s proprietary tax-loss harvesting algorithms through modules that show daily after-tax performance – including total realized gains and losses generated in the account – and the daily estimated account after-tax return. The new digital experience differentiates Schwab Personalized Investing by providing retail clients with deeper insights to help achieve their financial objectives.
Also on the digitization front, enrollment through Schwab financial consultants has been digitized for individual retail accounts, making enrollment in Schwab Personalized Indexing faster and easier. Digitized enrollment is anticipated to be available to more account types throughout 2023.
“We have seen strong adoption of Schwab Personalized Indexing since its launch last year and we are excited to introduce new customizations to further address unique client preferences or situations – such as concentrated stock positions or values-based exclusions – and to make investing a more personal experience,” said
Schwab Personalized Indexing, which launched nearly one year ago in
Schwab Personalized Indexing has an account minimum of
For more information about Schwab Personalized Indexing visit https://www.schwab.com/direct-indexing.
About Schwab Asset Management
One of the industry’s largest and most experienced asset managers, Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. By operating through clients’ eyes, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of
About
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
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Disclosures:
This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice.
Neither the tax-loss harvesting strategy nor any discussion herein is intended as tax advice, and Schwab Asset Management does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to
Schwab Personalized Indexing is available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's Disclosure Brochure for important information and disclosures relating to Connection and Schwab Managed Account Services.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Please refer to the
Portfolio Management for Schwab Personalized Indexing is provided by
There are risks associated with any investment approach, and each Schwab Personalized Indexing strategy and equity market segment has their own set of risks based on client strategy selection and further customization.
Strategies that use screening to exclude certain investments may not be able to take advantage of the same opportunities or market trends as strategies that do not use screens. There can be no assurance that the strategies will achieve their desired outcomes. Each investing strategy brings with it its own set of unique risks and benefits.
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Charles Schwab
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FAQ
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