New Schwab Model Portfolios Designed To Help Advisors Keep Clients On Course

Charles Schwab Investment Management, Inc. (CSIM), an asset management arm of The Charles Schwab Corporation, today announced the launch of a series of model portfolios available to advisors through the Envestnet Fund Strategist Network (Envestnet).
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Charles Schwab Investment Management, Inc. (CSIM), an asset management arm of The Charles Schwab Corporation, today announced the launch of a series of model portfolios available to advisors through the Envestnet Fund Strategist Network (Envestnet).

The new Schwab Model Portfolios offer advisors seven risk-based allocations, each using either low-cost market-cap-weighted ETFs or a blend of market cap and strategic beta ETF strategies. A behavioral overlay is also built into the models with the aim of helping advisors' clients stay invested across market cycles and conditions.

The portfolios offer advisors two straightforward approaches to portfolio construction:

  • A Series - a broad asset allocation approach that uses traditional market-cap-weighted exposures to equity, fixed income and real assets for a diversified, low-cost core portfolio
  • AB Series - an approach that builds from the core and incorporates strategic beta, value, growth, and other sub-asset class allocation exposures

Average weighted expense for the model portfolios ranges from 0.04% to 0.12%* with a minimum investment of $25,000 in alignment with Envestnet minimum requirements. Standard Envestnet platform access fees also apply for advisors.

"The model portfolios can help advisors provide their clients with broadly diversified market exposures either in the form of low-cost core passive allocations or with the additional diversifying benefits of strategic beta," said Jake Gilliam, Head of Multi-Asset Solutions at CSIM. "These investment solutions can free up advisors' time to focus even more on wealth management and client relationships, which is especially important in the current environment."

While the model portfolios are new on the Envestnet platform, Schwab has been working with advisors since early last year on how they can apply this portfolio framework approach on their own.

"This framework is built on decades of research and expertise, and advisor response to our approach has been very positive. Many also requested a platform-based solution to help them implement it, which led us to offer this new model portfolio structure," said Gilliam. "For advisors who prefer to use the framework and implement it on their own, they certainly can, making any adjustments that best fit their business. For others who prefer the convenience and automated tracking and reporting of a platform solution, the Schwab Model Portfolios can be accessed through Envestnet."

More information about the Schwab Model Portfolios is available here and details outlining the portfolio framework are available here.

About Charles Schwab Investment Management, Inc.

As of June 30, 2020, Charles Schwab Investment Management managed approximately $524.7 billion on a discretionary basis and approximately $16.9 billion on a non-discretionary basis. More information is available at

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Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab Funds and Schwab ETFs. Schwab Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). CSIM and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with SIDCO.

Investing involves risk. Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Information concerning portfolio allocations and holdings is representative of the portfolio allocations for this strategy and does not necessarily reflect an actual account. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments, market, economic and individual company considerations. Futures and options may not be used in the portfolio to create leverage or for any other reason.

Past performance does not guarantee or indicate future results.This information should not be relied upon as investment advice, research, or a recommendation by CSIM regarding (i) the ETFs, (ii) the use or suitability of the model portfolio allocations or (iii) any security in particular. This information is intended for use only by third party financial advisors, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for their own clients. Such financial advisors are responsible for making their own independent judgment as to how to use this information, and only clients and their advisors know enough about their financial circumstances to make investment decisions. CSIM does not have investment discretion over or place trade orders for any portfolios or accounts derived from this information. Performance of any account or portfolio derived from this information may vary materially from the performance shown herein. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results.

Envestnet is a separate and unaffiliated entity from Charles Schwab Investment Management, Inc.

* Cost is the average weighted expense ratio. Portfolio allocations are composed of certain low-cost Schwab ETFs. Other ETFs may be appropriate for a given asset class and should be evaluated on a case-by-case basis.

©2020 Charles Schwab Investment Management, Inc. All rights reserved. (0520-08PL)

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