Schwab Intelligent Portfolios

Schwab Intelligent Portfolios

3.0

(1 Review)

Robo Advisor

Schwab Intelligent Portfolios

Schwab Intelligent Portfolios

Schwab Intelligent Portfolios is investing made easy. Our robo-advisor builds, monitors, and rebalances a diversified portfolio of exchange-traded funds.

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Highlights

-3.13%

Asset Class Return30d

#40 Rank

In Robo Advisor30d

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Invest from

$5K

Referred friends can get up to $500 by making a deposit of cash or securities.

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Overview

Schwab Intelligent Portfolios welcomes you to automated investing, where their robo-advisor can help build and manage your portfolio. Invest for retirement, college, vacations, building long-term wealth, or creating a sustainable income stream. Based on your answers about your goals, risk tolerance, and timeline, Schwab Intelligent Portfolios will provide you a tailored portfolio from more than 80 variations. Automated investing with human help when you need it that is backed by their commitment to keeping costs low.

Things to Know

  • You make money on

    Value + Dividends

  • Fees

    0%

  • Min Investment

    $5,000

  • Payout frequency

    Quarterly

  • Term of investment

    Zero

  • Target Return

    7% - 10%

  • Liquidity

    Easy

  • Open to

    All Investors

  • Mobile Application

    iOS, Android

Top Perks

  • Automated investing with human help when you need it

  • Backed by their commitment to keeping costs low

  • Automatic tax-loss harvesting

How you make money

Stock price appreciation + dividends. For reference: according to historical records, the average annual return from the S&P Index since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%. Adjusted for inflation, the historical average annual return is around 7%. However, it's important to note that each Robo has their own investment strategy that can influence returns.

How Schwab Intelligent Portfolios makes money

ETFs: Schwab Intelligent Portfolios invests in Schwab ETFs. This creates revenue for Charles Schwab Investment Management, Inc., a Schwab affiliate that receives management fees on those ETFs. Schwab Intelligent Portfolios® also invests in third-party ETFs, and Schwab also receives compensation for providing shareholder services to those third-party ETFs. Cash: They believe cash is a key component of an investment portfolio. Based on your risk profile, a portion of your portfolio is placed in an FDIC-insured deposit at Schwab Bank. Some cash alternatives outside of the program pay a higher yield. Order Flow: Schwab receives revenue from the market centers where ETF trade orders are routed for execution.

Is it safe?

Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

  • Established

    1971

  • Country Available

    US Only

  • Assets Managed

    $3.3T

How You’re Taxed

Capital Gains

Capital Gains

As with any stock realized stock gains, investors are subject to capital gains tax. If gains are realized within one year, you are taxed at your income tax rate. If gains are realized after one year, you are subject to a long-term capital gains tax of 0% to 20%. A common service that some robo-advisors offer through their systems is automatic tax-loss harvesting. Tax-loss harvesting is a deliberate strategy whereby any loss from the sale of a security in a taxable account is used to offset a capital gain or taxable income, thereby reducing the tax paid.

Reviews

3.0
  • 5

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  • 4

    0

  • 3

    1

  • 2

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  • 1

    0

Reviews (1)
M

Matt Ivan

I don't currently use this product but may at some point, as Schwab is my main broker. While I think this is a high quality offering, and Schwab's ETFs are market-leading offerrings, I do have some concerns about this roboadvisor. Namely, it sacrifices your potential returns in order to make Schwab more money. In the *most* aggressive setting, Intelligent Portfolios forces you to have a 6% allocation in cash, which is stored at Schwab bank for a terrible interest rate. That's effectively money you have that's not doing anything. So you put 10,000 in the account and 9400 of it actually gets invested. There is no justifiable reason to have a fixed percentage of cash in a specific account like this. It's really a hidden expense ratio. Schwab makes spread on the cash. Meanwhile, you see your returns reduced by inflation. If you give Wealthfront $10,000, and choose a high risk score, they invest pretty much all of it! Less than 1% in cash at any given time. Sure, they charge a 0.25% AUM fee, but they also put all your cash to work. What's better for a $10,000 portfolio? Leaving $600+ uninvested long term or paying a $25 annual fee? Depends on what happens in the market. Short term, Schwab wins. Long term, it looks kind of sour.

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