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A subsidiary of the full-service Charles Schwab corporation, Schwab Wealth Management, also known as Schwab Asset Management, is an investment advisor and portfolio management company specializing in long-term core assets. Individual investors can access the firm’s portfolio management services in a few different ways — as a direct client, through wrap fee programs provided by broker-dealers or via their wealth managers. With just over 170 advisors, it’s registered to give financial advice nationally (all 50 states and several territories) and has locations in 11 states.
The bottom line: Schwab Asset Management touts a low-cost philosophy and focuses on pooled investment vehicles, such as exchange-traded funds (ETFs) and mutual funds.
|Assets under management (AUM): $609,947,976,569|
|Minimum investment: Varies by account type|
|Individual investor to advisor ratio: 1504:1|
|Fee structure: A percentage of AUM, other costs|
|Headquarters: 211 Main St., San Francisco, CA 94105
All information included in this profile is accurate as of October 13, 2021. For more information, please consult Schwab Asset Management’s website.
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Schwab Asset Management (the trade name for Charles Schwab Investment Management, Inc.) is part of the larger Charles Schwab corporation, which is a full-service, international investing and banking business. The San Francisco–based company was founded in 1971 and pivoted to become one of the first discount brokerages in 1975.
Schwab Asset Management formed in 1989 and has since been successful, acquiring TD Ameritrade and USAA’s Investment Management Company in 2020. The wealth management arm of the firm today has just over 170 advisors that oversee $609.9 billion in assets.
Charles “Chuck” R. Schwab started the business in 1971 and established the firm’s aim to make investing affordable. He earned an MBA from Stanford and has stated that being dyslexic helped him excel at conceptual visualization. The concept of low prices and fast order executions made his practice successful. He has publicly supported Republican leaders, including former President Trump, authored several bestselling investment books and remains Chair of the Board at Charles Schwab.
More than 80% of Schwab Asset Management’s AUM comes from investment companies. The second largest group by AUM is individual investors followed by pooled investment vehicles.
The minimum account balance accepted at the firm ranges from $25,000 to $500,000 depending on the account.
|Schwab Asset Management Investment Minimums|
|Account program||Minimum investment requirement|
|Schwab Managed Portfolios™||$25,000|
|Schwab Personalized Indexing||$100,000|
|USAA Managed Portfolios — UMP® Wrap strategies||$25,000|
|USAA Managed Portfolios — UMP® Custom strategies||$500,000|
|Wasmer Schroeder Strategies||$500,000|
Schwab Asset Management offers portfolio management for individuals, small businesses, investment companies, pooled investment vehicles and other businesses and institutional clients. It does not offer financial planning or pension consulting services.
Charles Schwab offers ETFs, mutual funds and separately managed strategies to meet the needs of most investors. They focus on core funds and strategies, which aim to secure a long-term portfolio with central assets that have a track record of consistent returns. One of their specialities is low-cost index products, which aim to meet or beat the performance of industry indexes, such as Dow Jones and the S&P 500.
|Portfolio/Fund name||Investment strategy / focus|
|Schwab Managed Portfolios™||Strategy: Custom
Focus: ETFs and mutual funds
|Charles Schwab Pooled Investment Vehicles||Strategy: Quantitative and qualitative
Focus: Domestic and foreign equity and fixed income
|Windhaven® Strategies||Strategy: Quantitative and qualitative
Focus: Domestic and international equity, fixed income, ETFs and mutual funds
|ThomasPartners® Strategies||Strategy: Quantitative and qualitative
Focus: Foreign and domestic equity
|USAA Managed Portfolios — Wrap strategies||Strategy: Very aggressive to 100% fixed income
Focus: Mutual funds, money market funds, ETFs
|USAA Managed Portfolios — Custom strategies||Strategy: Very aggressive to 100% fixed income
Focus: Mutual funds, money market funds, ETFs, ADRs, individual stocks and bonds
|Wasmer Schroeder Strategies||Strategy: Fundamental, cyclical, quantitative and qualitative
Focus: Tax exempt fixed income, time-sensitive bonds (ultra short, short, intermediate, ladder), core bonds, core credit, multi-sector income, taxable fixed income managed ETF
Schwab Asset Management charges several types of investment fees. Here are the asset-based ones:
|Portfolio/Fund name||Direct client fee|
|Schwab Managed Portfolios™||0.20% to 0.90% of AUM|
|Windhaven® Strategies||0.50% to 1.00% of AUM|
|ThomasPartners® Strategies||0.60% to 1.00% of AUM|
|USAA Managed Portfolios — Wrap strategies||1.60% to 2.20% of AUM|
|USAA Managed Portfolios — Custom strategies||1.30% to 2.20% of AUM, plus investment management fees|
|Wasmer Schroeder Strategies||0.08% to 0.75% of AUM, plus any wrap or brokerage fees|
Additional costs include brokerage and wrap fees. Clients of the USAA Managed Portfolios also pay the operating expense ratio (“OER”) of ETFs and mutual funds used in the portfolios, plus program fees.
The SEC requires all businesses of registered investment advisors to disclose any civil, regulatory or criminal actions that occurred within the last 10 years that could impact a client’s evaluation of the business or management.
Schwab Asset Management reports a disciplinary disclosure involving the offer, sale and management of two funds: the “Schwab YieldPlus Fund” and the “Schwab Total Bond Market Fund.” The SEC found that from 2005 to 2008, Schwab deviated from the funds’ policy on the asset allocation concentration without shareholder approval; made materially misleading statements and omissions about, as well as understated the weighted average maturity of, the YieldPlus Fund; and did not establish reasonable policies and procedures to prevent the misuse of material nonpublic information about the YieldPlus Fund.
For further information, visit the firm’s Investment Adviser Public Disclosure (IAPD) page.
Schwab Asset Management can serve investors in all 50 states and D.C., with physical offices in the following locations:
If you’d like to fill out your portfolio with core funds and strategies, Schwab could be it. The firm has a low-cost philosophy, a minimum investment of $25,000 for some funds and industry-normal fees. However, its individual investor to advisor ratio isn’t favorable if you’re seeking more personal attention from your advisor. And if you’d like a shorter term, non-core investment strategy, another firm may better offer that specialization.
If you’d like to see further financial advisor options, check out the MagnifyMoney financial advisor search tool.
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