Schwab Launches Personalized Indexing for RIAs: Tech Roundup

What You Need to Know

Schwab Personalized Indexing offers tax management and portfolio management capabilities for RIAs and retail investors.
Broadridge is incorporating AdvisorTarget's advisor intent data into its analytics and advisory offerings.
BNY Mellon launched a new ETF Intelligent Basket Builder tool and ETF Asset Flow Analytics Dashboard.

Charles Schwab launched Schwab Personalized Indexing, a new direct indexing solution with tax management and portfolio management capabilities, for registered investment advisors and retail investors, the firm said Wednesday.

Clients who enroll in Schwab Personalized Indexing will work with a Schwab financial consultant to open an account or talk to their RIA.

Schwab intends to roll out more capabilities, features and strategies that it said will “bring even more of the benefits of direct indexing — including greater customization — to retail investors and advisors over the next 12-18 months.”

Unlike an index mutual fund or exchange-traded fund, direct indexing involves direct ownership of securities and may offer a greater level of tax management for investors, Schwab said.

Schwab Personalized Indexing strategies and their respective indexes include: a U.S. Large Cap based on the Schwab 1000 Index, a U.S. Small Cap based on the S&P SmallCap 600 Index, and an environmental, social and governance offering based on the MSCI KLD 400 Social Index. Each strategy seeks index-like returns with enhanced after-tax benefits.

Each client account is optimized based on current holdings and unrealized tax profile, and the portfolio management team will consider factors including risks, taxes and tracking error during portfolio construction and daily management.

Schwab Personalized Indexing uses a proprietary optimization process that Schwab said was built in house and includes automated monitoring of client portfolios and tax-loss harvesting technology.

Schwab Personalized Indexing launches with an account minimum of $100,000, which the firm said is “lower than most direct indexing offerings on the market which typically start at $250,000 or higher.” Starting at 0.40%, fees are “competitive and lower than many direct indexing offers available to advisors and investors today,” it said.

Broadridge Adds AdvisorTarget Data

Broadridge Financial Solutions is incorporating AdvisorTarget‘s advisor intent data into its analytics and advisory offerings, the companies said in a joint announcement on Wednesday.

The addition of AdvisorTarget‘s data was designed to “help asset managers sharpen their distribution strategies and improve advisor segmentation, digital marketing and social media engagement,” according to the firms.

Broadridge’s asset management clients will benefit from the integration of the data, which the companies said “identifies products of interest to advisors and increases data inputs for predictive analytics to help better match sales efforts with interested buyers.”

Broadridge partners with asset managers to create data driven distribution strategies via advisor segmentation, customer journey mapping and scoring. The addition of AdvisorTarget’s data with Broadridge’s distribution advisory offering will “inform strategies based on both existing holdings and content engagement history,” the companies said.

That combined view of advisor behavior data and holdings will “enable asset managers to target advisors with greater precision and efficiency,” according to the firms.

The addition of the data also “furthers Broadridge’s strategy to enhance and support asset and wealth managers in their approach to digital engagement,” according to the company.

BNY Mellon Adds New ETF Solutions

BNY Mellon launched a new ETF Intelligent Basket Builder tool and ETF Asset Flow Analytics Dashboard, it said Tuesday.

Advisor360° Launches Automated Document Bundling

Advisor360° launched Automated Document Bundling, which the firm said Wednesday detects, enriches and batches new account documents submitted by advisors.

It’s the latest in a series of innovations to Advisor360°’s wealth management software.

The new capability enables broker-dealers to complete new account case volumes faster by lowering the number of cases and enriching information seamlessly across multiple documents, “decreasing processing times and room for human error,” the company said.

“The ability to enrich the metadata across required documents and close gaps in information results in faster new account openings and fewer errors in paperwork processing,” according to the firm.

Automated Document Bundling is available to users of Advisor360°’s Imaging application programming interface, which offers enhanced auditing, reporting and household-level group capabilities, the company said.

Advyzon Launches Quantum Rebalancer

The Advyzon Quantum Rebalancer is now available to all advisors and Advyzon users, the company said Tuesday.

Quantum is an in-house trading and rebalancing tool and the latest feature integrated into the Advyzon cloud-based platform, which combines portfolio management, customizable performance reporting, trading and rebalancing, client web portals, client relationship management, client billing and document storage.

The tool went live after being beta tested since February 2021, according to John Mackowiak, Advyzon chief business development officer. “It’s an important component of our platform that our team has been working on and finetuning for years, and we’re confident that it will improve the portfolio management process for Advyzon users and advisors everywhere,” he said in the announcement.

Advyzon now serves more than 1,100 advisory firms, it said.