Managed Account Platform Section

Introduction to Schwab Personalized Indexing (SPI)

Introduction to Schwab Personalized Indexing (SPI)

Schwab Personalized Indexing™ (SPI) is a separately managed account (SMA) offer managed by Schwab Asset Management. Automated, quantitative techniques are used to optimize portfolios while seeking to track each client's reference index, with potential after-tax benefits.

SPI allows advisors to customize portfolios for their clients based on selected equity benchmark indexes and seeks to track the performance of an index over time, while delivering potential near term after-tax benefits. Portfolio managers monitor account separately on a daily basis and use proprietary technology seeking to optimize portfolios and potential tax-loss harvesting opportunities.

Additional information for SPI is available through the Schwab Managed Account Access® platform.For important information and disclosures relating to Access and Schwab Managed Account Services, refer to the Charles Schwab Investment Management, Inc. disclosure brochure. 

Benefits

  • Tax efficient
    • Tax optimization seeks to minimize tax liabilities and have your client's portfolio potentially outperform a reference index on an after-tax basis.
  • Customizable*
    • SPI allows clients to customize their portfolios based on selected equity benchmark indexes that seek to track the performance of an index over time.
    • Choose from four index-based strategies for the market exposure your client prefers, with the ability to exclude a limited number of individual stock and/or industry categories.
  • Professionally managed
    • Portfolio managers leverage proprietary technology seeking to optimize your client's portfolio and monitor it on a daily basis.

 

Available Strategies 

Strategy NameStrategy TypeTypical Representative Number of Securities Held in an SPI Account
Schwab Personalized Indexing MSCI EAFE InternationalInternational400
Schwab Personalized Indexing Schwab 1000 EquityU.S. Large Cap (Domestic)500
Schwab Personalized Indexing S&P Small Cap 600U.S. Small Cap (Domestic)450
Schwab Personalized Indexing MSCI KLD 400 SocialEnvironmental, social, and corporate governance (ESG)250

To learn more about the available strategies, go to Schwab Advisor Center and select, Research > Managed Accounts.  

For information on SPI go to Schwab Advisor Center and select, Research > Managed Accounts > Money Managers. Next, use the Search by Money Managers and look for Charles Schwab Investment Management. 

or

Go to Schwab Advisor Center and select, Research > Managed Accounts > Investment Strategies. Next, use the search, Search by Money Managers or Investment Strategy and look for Schwab Personalized Indexing.

For initial steps to open a managed account, including an SPI account, please refer to our training guide, Schwab Managed Account platforms

Fees

Schwab Personalized Indexing fees are included in Managed Account Access program fees in the Managed Account Services™ Disclosure Brochure and start at 25 bps. Please contact a Wealth Asset Management RIA Regional Director or call the Wealth Asset Management RIA Sales Desk at 877-824-5615 with questions.

Resources

Webcast: How to open a Schwab Personalized Indexing account using digital enrollment.

Schwab Asset Management provides a page for advisors and their clients on their website with details on direct indexing and Schwab Personalized Indexing. 

Contacts:

Questions about Schwab Personalized IndexingWealth Asset Management RIA Sales Desk at 877-824-5615
Questions about account opening for Managed Account Select, Managed Account Access or Schwab Personalized IndexingManaged and Advised Account Operations (MAAO) at 877-595-6345
Questions about the digital onboarding workflow or SAC.com functionalityAdvisor Platform Support at 800-647-5465

How to open a Schwab Personalized Indexing account
How to maintain a Schwab Personalized Indexing account

*The extent to which holdings can be personalized is subject to account type and investment management guidance. All accounts may exclude up to three securities.

Portfolio Management for Schwab Personalized Indexing™ is provided by Charles Schwab Investment Management, Inc., dba Schwab Asset Management®, a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. (“Schwab”). Both Schwab Asset Management and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc. Member SIPC. 

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. Please refer to the Charles Schwab Investment Management, Inc. Disclosure Brochure and Schwab's disclosure brochure for additional risk disclosure information. 

Environmental, social, and corporate governance (ESG) strategies implemented by mutual funds, exchange-traded funds (ETFs), and separately managed accounts are currently subject to inconsistent industry definitions and standards for the measurement and evaluation of ESG factors; therefore, such factors may differ significantly across strategies. As a result, it may be difficult to compare ESG investment products. Further, some issuers may present their investment products as employing an ESG strategy, but may overstate or inconsistently apply ESG factors. An investment product's ESG strategy may significantly influence its performance. Because securities may be included or excluded based on ESG factors rather than other investment methodologies, the product's performance may differ from (may be either higher or lower than) the overall market or comparable products that do not have ESG strategies. Environmental ("E") factors can include climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social ("S") factors can include how an issuer manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Corporate governance ("G") factors can include how an issuer operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. Carefully review an investment product's prospectus or disclosure brochure to learn more about how it incorporates ESG factors into its investment strategy.

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 screening. 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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