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

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What is Schwab Personalized Indexing™?

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Female narrator [off-screen]: Think about your car. Your clothes. Even the coffee you order. You can personalize them to reflect your style or your tastes.

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Shouldn't index investing be personalized?

Narrator: Shouldn't you get the same level of personalization with your index investing?

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Index investing gives you broad market exposure and diversification.

Narrator: Traditional index investing, like through ETFs or mutual funds, gives you broad market exposure and a more diversified portfolio.

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But what if the securities don't align with your preferences?

Narrator: But what if some of the securities within a fund don't align with your values or your personal preferences?

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You can't add or remove securities.

Narrator: With traditional index funds, you can't add or remove securities to suit you.

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Or manage gains and losses at the individual holding level.

Narrator: And you can't manage gains and losses at the individual holding level to help improve tax efficiency, either.

The wooden pieces slide away, and a digital tablet slides into view; the Schwab logo and tagline are visible onscreen. After a moment, the words "Schwab Personalized Indexing™" appear on the tablet’s screen.    

Narrator: We're taking index investing to the next level with Schwab Personalized Indexing^™.

On the tablet, the word “Personalized” disappears and is replaced by the same word but in a blue handwritten font. Disclosures appear in small font at the bottom of the tablet.

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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.
Own your tomorrow^®

Narrator: What makes Schwab Personalized Indexing different is in its name: a professionally managed, index-based portfolio that you can personalize.

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Strategy 1
Strategy 2
Strategy 3
Strategy 4
Choose the strategy that fits your investing goals.

Narrator: Here's how it works. You start by choosing an index-based strategy that gives you the market exposure you're looking for.

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Narrator: Then, because Schwab Personalized Indexing gives you the opportunity to own the individual stocks that reflect the characteristics of the index in a separately managed account…

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Exclude securities or industries that don't fit your preferences.
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.

Narrator: …you have the ability to exclude individual securities—or even entire industries, if you prefer.

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Narrator: So you get similar market exposure and diversification of an index fund—but customized to your preferences.

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Direct indexing is now accessible to more investors.

Narrator: This approach—known as direct indexing—has traditionally been available to large institutions and fund managers due to high minimums and high fees. But now, Schwab has made direct indexing accessible to more investors.

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Tax efficient

Narrator: Schwab Personalized Indexing has a lot to offer. It can also serve as a tax-efficient foundation for your portfolio.

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Manage gains and losses at the individual holding level.

Narrator: Because you own each security, gains and losses can be managed at the individual holding level with automated tax-loss harvesting.

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Narrator: This allows for tax optimization, which seeks to minimize tax liabilities to help your portfolio potentially outperform the index on an after-tax basis.

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Professionally managed

Narrator: Experienced portfolio managers monitor your account on a daily basis and use proprietary technology to optimize portfolios and seek out potential tax efficiencies.

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Narrator: You'll also have visibility into your account. Your personal dashboard makes it simple to review account details and monitor your performance at a glance.

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Schwab Personalized Indexing
Customizable. 
Tax efficient.
Professionally managed.

Narrator: Customizable. Tax efficient. Professionally managed. It's how Schwab Personalized Indexing takes index investing to the next level.

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To speak with a Financial Consultant, call 855-653-1959 or visit schwab.com/consultant.

Narrator: If you're ready for a more personalized portfolio, talk to a Schwab Financial Consultant about Schwab Personalized Indexing.

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Own your tomorrow^®

DISCLOSURES:

This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.

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

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.

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.

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

Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.

There are risks associated with any investment approach, and each Schwab Personalized Indexing strategy and equity market segment has its own set of risks based on client strategy selection and further customization.

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 the Internal Revenue Service ("IRS") website at www.irs.gov for the consequences of tax-loss harvesting.

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.

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.

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