Schwab's rating system draws raves

The role of research on Wall Street is morphing, but we're not exactly sure what it is morphing into. It is not the sell-side deal-driver it once was obviously--the institutions seem to take a lesser view of it these days--but many are convinced it has its place in the retail product chain. Case in point: Charles Schwab. Fortune notes since the launched of its Schwab Equity Ratings system in 2002, its model portfolio has nearly doubled. The S&P 500, meanwhile, returned about 35 percent. The firm developed the system because retail investors apparently voiced a preference for funds that rely on such research to buy individual stocks. It's fair to say that all brokerages position their research as account benefits. But usually it is repurposed sell-side stuff. We've yet to see a truly dazzling retail product emerge.  

For more on Schwab:
- here's the Fortune article

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