Schwab today announced the immediate availability of six new managed portfolios of exchange-traded funds (ETFs) available through a low cost fee-based portfolio advisory program. The new portfolios are the latest addition to a broad range of professionally managed investment solutions available to Schwab clients seeking advice.
Schwab Managed Portfolios-ETFs are made up of diversified ETF holdings representing up to 19 core sub-asset classes and make it easy and affordable for the individual investor to get broad diversification in a single account that is professionally managed. By holding potentially as many as two dozen different ETFs, Schwab Managed Portfolios-ETFs offer diversification across all the major equity and fixed income asset classes, as well as TIPs, real estate and commodities. Portfolio managers make ongoing adjustments to take advantage of market opportunities while controlling risk. In addition, the portfolios are rebalanced as needed to maintain the investor’s target asset allocation.
The portfolios have an investment minimum of $100,000 and a program management fee of 0.75% for the first $500,000 in assets, 0.65% for the next $500,000 in assets, and 0.50% for assets over $1 million.
“Investors today are looking for more help managing the risk in their investments while striving for an appropriate level of return that helps them get the most out of their money,” said Ben Brigeman, Executive Vice President for Investor Services. “These portfolios provide highly sophisticated asset allocation and diversification – benefits that used to be available only to the few and at considerable cost – to a much wider segment of the public.”
The new Schwab Managed Portfolios – ETFs follow other recent initiatives at Schwab designed to provide greater value for clients, including the launch of Schwab ETFs, which trade commission-free online through Schwab accounts, and the reduction of operating expense ratios for Schwab Equity Index Funds.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.7 million client brokerage accounts, 1.5 million corporate retirement plan participants, 706,000 banking accounts, and $1.4 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Named “Highest in Investor Satisfaction with Self-Directed Services” by J.D. Power and Associates in 2009, 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; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com. (0110-0598)
Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.
Some specialized exchange-traded funds can be subject to additional market risks. Investment returns will fluctuate and are subject to market volatility, such that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Diversification may not protect against investment loss. Schwab ETFs distributed by SEI Investments Distribution Co (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc.
Online trades of Schwab ETFs are commission-free at Schwab, while trades of 3rd party ETFs are subject to commissions. Broker-assisted and Automated Phone trades are subject to service charges. Minimum $1,000 deposit is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. All ETFs are subject to management fees and expenses.
Securities, products, and services are not available in all countries and are subject to country-specific restrictions.
Please read Schwab’s Disclosure Brochure for important information and disclosures relating to Schwab Managed Portfolios™. Portfolio Management provided by Charles Schwab Investment Advisory, Inc. (“CSIA”), an affiliate of Charles Schwab & Co., Inc., (“Schwab”).
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