Schwab Adds Low-Cost, Market-Cap-Weighted, and Blended ETF Model Portfolios to Riskalyze Platform, Enabling Advisors to Create and Compare Investment Portfolios Based on Client Risk Tolerance

Charles Schwab Investment Management, Inc. (CSIM), an asset management arm of The Charles Schwab Corporation, today announced the availability of a series of Schwab Model Portfolios to advisors on the Riskalyze platform.

The 14 Schwab Model Portfolios offer advisors risk-based allocations they can implement and adjust using either low-cost, market-cap-weighted ETFs or a blend of market-cap and strategic beta ETFs. A behavioral overlay is also built into the models with the aim of helping advisors’ clients stay invested across market cycles and conditions.

Riskalyze provides quantitative measurements of portfolios on its platform so advisors can align investment solutions with the risk tolerance of their clients. One of the key metrics provided is the Riskalyze GPA®, which measures return efficiency among portfolios with similar risk profiles and scores them on a scale similar to that used in a school grading system, ranging from 1.0 to 4.3. Higher scores indicate more efficient portfolios. The 14 Schwab Model Portfolios earned Riskalyze GPA scores ranging from 3.5 to 4.1 for the fourth quarter 2020.

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 expenses for the Schwab Model Portfolios range from 0.04% to 0.12% when using Schwab ETFs.*

Advisors on Riskalyze can choose to implement the Schwab Model Portfolios as presented or adjust their allocations, mixing and matching with other mutual funds and ETFs from Schwab or a different provider as they see fit. When changes are made, a new Riskalyze GPA score is issued to each portfolio. Average weighted expenses may change if advisors add or remove specific ETFs or mutual funds within the portfolios they build.

“Years of research and expertise went into the construction of these model portfolios so we were pleased to see that reflected in the GPA scores they earned from Riskalyze,” said Jake Gilliam, Head of Multi-Asset Solutions at CSIM. “Advisor response to the model portfolios has been strong, so we are excited to be expanding distribution to the more than 7,000 RIAs and institutions using the Riskalyze platform today.”

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SCHWAB MEDIA CONTACTS:
Mike Peterson
Charles Schwab
330-908-4334
[email protected]

Charlie Mathon
The Neibart Group
718-801-8824
[email protected]