Charles Schwab Investment Management says it has added 14 of its model portfolios to the Riskalyze platform available to advisors.
The portfolios offer risk-based allocations using low-cost market-cap-weighted exchange-traded funds or a mix of market-cap and strategic beta ETFs, according to Schwab. The models also have a built-in “behavioral overlay” aimed at helping advisors' clients hold on to their investments during market turmoil, Schwab says.
Advisor have a choice of A Series portfolios, which offer a broad allocation using traditional market-cap-weighted exposures to equity, fixed income and real assets, for a diversified, low-cost core portfolio, and the AB series portfolios, which builds on the core by incorporating allocation to strategic beta, value, growth and other sub-asset classes, according to Schwab.
Schwab says its portfolios carry average weighted expenses ranging from 0.04% to 0.12% when advisors use Schwab ETFs.
Advisors, however, can either use the Schwab model portfolios as they’re presented or mix them with other mutual funds and ETFs from Schwab or other providers, which may change the average weighed expenses, according to Schwab.
“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,” Jake Gilliam, head of multi-asset solutions at CSIM, says in a statement.
“The addition of these model portfolios to the Riskalyze platform aligns with our strategy to expand distribution of our models as well as turnkey portfolios on leading third-party platforms to meet demand from advisors, [independent broker-dealers] and other institutions," he adds.
CSIM says it managed around $534 billion on a discretionary basis and around $18 billion on a non-discretionary basis as of the end of September.
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