Responsible, Efficient Investing

A step beyond broad market index investing.

What is Custom Indexing?

Custom indexing allows investors to design an index adjusted towards their specific needs. Users are able increase or decrease exposure to specific traits within a predetermined index, such as stock size, asset class, or certain sectors. Through this personalized approach, investors can utilize indices to benefit more holistically. Custom indexing takes the simplicity of broad market indexing one step further.

Responsibility

Custom indexing embodies responsibility in investing by promoting values such as long-term sustainability over short-term gains. It fosters an approach which emphasizes value investing over day trading, so that returns accrue in the long run. Moreover, custom indexing aligns with Environmental, Social, and Governance (ESG) standards. Investors engaging in custom indexing are able to prioritize companies with ethical practices, contributing to a more sustainable and socially responsible market.

Efficiency

Efficiency is a hallmark of custom indexing. For example, investors are able to streamline investment strategies by grouping sectors together. This approach minimizes risk, enhances diversification, and optimizes performance. Investors benefit from targeted exposure, aligning their portfolios with specific economic trends and market opportunities. Custom indexing, with its efficient grouping of sectors, allows for a more precise investment strategy tailored to individual goals and risks.

“Gives you greater control and allows for increased personalization”

-Schwab Personalized Indexing™

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