Davidow's research shows that traditional market-cap, active and fundamental index strategies are complementary, and provide investors with an additional layer of diversification that strive to span all points within a market cycle. For those investors who only hold traditional market-cap index strategies, Davidow says that it may be an opportune time to consider adding one or more fundamentally weighted strategies to their portfolios.The full whitepaper, part of Schwab's Investing Ideas series, is available here. Schwab Investing Ideas offer analyses of key market trends and investing opportunities investors can act on now from the Schwab Center for Financial Research. More information, including other recently published insights, can be found on Schwab's Investing Ideas page. Visit here to view additional research from Davidow on the benefits of Fundamental Indexing strategies. About Schwab 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. More information is available at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn. Disclosures: Past performance is no guarantee of future results. Forecasts contained herein are for illustrative purposes, may be based upon proprietary research and are developed through analysis of historical public data. The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. Data here is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic or geopolitical conditions.Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Through its operating subsidiaries, The Charles Schwab Corporation (NYSE:SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com. © 2015 Charles Schwab & Co., Inc. Member SIPC. 1 Morningstar defines strategic beta as a class of investment products that track indexes that seek to either improve performance or alter the level of risk relative to a standard benchmark. (0715-4824)