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Choose the mutual funds that best complement your portfolio with powerful tools, insights, and guidance from Schwab.
Get help building a diversified portfolio
Building a diversified portfolio is a key principle for investing success.1
But with thousands of funds to choose from across many asset classes, getting started can be challenging.
Schwab's Personalized Portfolio Builder simplifies this process by helping you build a diversified portfolio of mutual funds or ETFs (exchange-traded funds) that meets your needs.
Here's how it works.
First, log in and choose the specific Schwab account you want to build your portfolio in.
Then you'll select the type of investment you're looking for. You can build an all-mutual fund portfolio—either taxable-bond funds or municipal-bond funds—or an all-ETF portfolio.
From there you'll choose your risk profile, ranging from conservative to aggressive. Once you choose, you'll see a preview of our recommended asset allocation.
After that, you'll specify your initial investment. There is no minimum, but we suggest at least $5,000 to ensure proper diversification.
Next, you'll compare and select from the short list of funds chosen by our experts.2
The charts provide information on recent performance history, or you can dive deeper for a more thorough comparison.
Once you select a fund, the Personalized Portfolio Builder automatically calculates the number of shares you need to purchase in order to match your target asset allocation.
You'll choose across multiple asset classes to build your new diversified portfolio. You can customize your allocation percentages to fit your preferences or opt out of an asset class altogether.
Once you've completed your selections, click the Trade button to purchase the funds. You'll now be able to track and monitor your positions from your account.
To access the Personalized Portfolio Builder and get started on your own diversified portfolio, open an account in just minutes on schwab.com or call us with any questions at 866-855-7728.
1. Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
2. For illustrative purposes only. All tickers are hypothetical and do not represent any actual investment. Please see important disclosures at the end of this presentation.
Build a personalized portfolio with Schwab—at no cost.
Create a personalized portfolio of mutual funds or ETFs with our Personalized Portfolio Builder tool.
- Create your portfolio in 5 simple steps
- Complimentary to use for Schwab clients
- No minimum investment required
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Find top-performing mutual funds, including Schwab Index Funds and leading funds from third-party providers, across various categories with our Select List®. Rigorously prescreened by our experts and updated each quarter, the list narrows down a universe of 20,000 mutual funds to 175 carefully selected options. Each mutual fund has no loads or transaction fees, leaving you more money to invest.
Funds and features
FundsLarge-cap U.S. stock funds>Features
- Invest primarily in stocks that fall in the top 70% of the U.S. market capitalization range.
- Includes Large-cap Growth, Value, and Blend funds.
FundsSmall- and mid-cap U.S. stock funds>Features
- Small-caps invest in stocks falling in the bottom 10% of the U.S. market cap range.
- Mid-caps invest primarily in stocks that fall in the next 20% of the range above the small-cap stocks.
FundsInternational stock funds>Features
- Typically have less than 20% of assets invested in the United States.
- Includes World Large Stock, Regional, and Emerging market funds.
- Concentrate investments in firms that fall into specific industries that produce related products or services.
- In general, have a low correlation to market indices.
- Can be more volatile than broadly diversified equity funds.
FundsTaxable bond funds>Features
- Generally invest in the debt obligations issued by the U.S. Treasury, other U.S. government agencies, and U.S. corporations.
- May invest in high-yield and foreign (non-U.S.) bonds.
FundsTax-free bond funds>Features
- Primarily invest in municipal bonds generally issued by state and local governments to fund general expenditures and public projects.
- Investment income may be subject to certain state and local income taxes or alternative minimum tax (AMT).
FundsAdditional fund categories>Features
- Balanced funds invest in a mix of stocks, bonds, and cash within one fund.
- Also includes Convertible funds and Target Date funds.
- How are funds selected for Schwab's Mutual Fund Select List?
To create our quarterly Mutual Fund OneSource Select List® of approximately 175 mutual funds, we rigorously evaluate the entire universe of over 20,000 funds. Only those funds that participate in Schwab's Mutual Fund OneSource® service with the best combination of eligibility, quantitative assessment, and qualitative review make the final analysis.
Charles Schwab Investment Advisory, Inc. (CSIA) analyzes the funds tracked by Morningstar, using the quantitative selection criteria listed below. Next, based on its qualitative analysis, CSIA builds the Mutual Fund OneSource Select List by selecting the most favorably evaluated funds participating in Schwab's Mutual Fund OneSource® service, including Schwab Funds® and Laudus Funds® ("Schwab Affiliate Funds"), within each Morningstar category.
Most of the funds on the Select List are actively managed funds that participate in the Schwab Mutual Fund OneSource service. In addition, CSIA also includes Schwab Affiliate Funds™ index mutual funds in certain categories.
How do we arrive at the Mutual Fund OneSource Select List?
- Funds with a transaction fee or sales load
- New funds with less than three years of history¹
- Funds with assets of less than $20 million
- Funds not available to new investors in all 50 states²
- Funds in esoteric categories
- Quantitative Assessment
- Funds against their category peers
- Factors including alpha, expenses, firm size, fund size, active share, and cash inflows
- Overall rankings based on a proprietary multifactor model
- Qualitative Review
- Only highly rated funds based on our proprietary multifactor model
- Consistency and viability of the investment strategy
- Management structure
- Sector diversification
- Performance based on our expectations
- Final Analysis
- Funds that meet the eligibility, quantitative assessment, and qualitative review requirements above
- Funds that are most representative of their designated category
- Funds that provide a diverse list of options
- Funds that are expected to outperform their peers over the next 12–36 months
Mutual Fund OneSource Select List
Our final quarterly list of experts' top picks—approximately 175 funds—makes it easy to find the right choices for your portfolio.
Actively managed funds participating in the Schwab Mutual Fund OneSource service, including Schwab Affiliate Funds, are evaluated by CSIA based on a quantitative analysis of risk, performance, expenses, active share (when meaningful), assets under management, and asset flows. CSIA may also apply additional qualitative factors to its analysis to enhance its overall evaluation of a fund, including, for example, changes in a fund's investment strategy or management structure, portfolio manager tenure, whether a fund's investment style and portfolio holdings are representative of its investment category, portfolio composition and turnover rates, consistency of a fund's performance and CSIA's evaluation of the fund over time, and other risk and diversification considerations.
The "Leading Schwab Affiliate Funds" sections of the Select List feature eligible actively managed Schwab Affiliate Funds that generally fall into the top 35% of all CSIA-evaluated funds (regardless of whether a fund participates in Schwab's Mutual Fund OneSource service) in their respective Morningstar categories. If two or more Schwab Affiliate Funds that fit this criterion also have similar investment styles, CSIA may determine that only the most favorably evaluated fund(s) be included in the list. Because Schwab Affiliate Funds included in the "Leading Schwab Affiliate Funds" sections of the Select List are selected independently of other actively managed funds on the list, they may have a less favorable evaluation overall than the funds listed in the "Leading Third-Party Funds" sections of the list.
The "Index Funds" sections of the Select List feature only Schwab Affiliate Funds. They include up to one market-capitalization-weighted index fund for each of the large-cap, small-cap, international, and taxable bond asset classes, and one fundamentally weighted index fund for each of the large-cap, small-cap, developed large-cap international, developed small-cap international, and emerging market asset classes. A market-capitalization-weighted index fund is a fund that attempts to match the performance of an established list of securities, where the securities with the highest market capitalization (total market value of outstanding stock) get the most weight. A fundamentally weighted index fund is a fund that attempts to match the performance of an established list of securities, where the securities with the highest fundamental value (measured based on criteria such as sales, cash flow, dividends, and stock buybacks) get the most weight. A Schwab Affiliate Fund that is market-capitalization-weighted and a Schwab Affiliate Fund that is fundamentally weighted are included unless no funds meet Schwab's quantitative and qualitative evaluation criteria.
The Schwab affiliate index fund that receives the most favorable evaluation by CSIA in each asset class is included on the Select List. If two index funds receive equal evaluations, CSIA will generally include the fund that has the lower expense ratio.
The "Leading Third-Party Funds" sections of the Select List feature eligible actively managed third-party funds that participate in Schwab's Mutual Fund OneSource service that generally fall within the top 35% of all CSIA-evaluated funds within a given Morningstar category and that receive the most favorable evaluations in their respective categories.
For the Select List, CSIA generally includes the five most favorably evaluated funds in each of the large-cap, small-cap, intermediate-term bond, municipal national intermediate, and foreign large-blend asset categories, and the two most favorably evaluated funds in all other asset categories. If two or more of the most favorably evaluated funds within an asset category have similar investment styles, CSIA may substitute a less favorably evaluated fund for one or more of those funds to provide a more diverse selection of fund investment strategies.
Additional Important Information
Approximately 4,300 funds participate in the Mutual Fund OneSource® service. Only these funds, including Schwab Affiliate Funds, are eligible for the OneSource Select List. Schwab receives remuneration from fund companies, and/or their affiliates, in the Mutual Fund OneSource service for record keeping, shareholder services and other administrative services. Schwab and its affiliates also receive fees from the Schwab Affiliate Funds for investment advisory and fund administration services. The aggregate fees Schwab or its affiliates receive from Schwab Affiliate Funds (see fund prospectuses for more details) are greater than the remuneration Schwab receives from other fund companies participating in Schwab's Mutual Fund OneSource service. The amount of fees Schwab or its affiliates receive from funds participating in the Mutual Fund OneSource service is not considered in the Select List selection, nor does any fund pay Schwab to be included in the Select List. Eligible funds are selected based solely on the quantitative and qualitative criteria described above.
Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab Funds and Laudus Funds. Charles Schwab & Co., Inc. (Schwab), Member SIPC, is the distributor for Schwab Funds and Laudus Funds. CSIM and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
How are funds selected
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