Schwab Intelligent Portfolios
Schwab Intelligent Portfolios is investing made easy. Our robo-advisor builds, monitors, and rebalances a diversified portfolio of exchange-traded funds.
Highlights
+2.73%
Asset Class Return•30d
#39 Rank
In Robo Advisor•30d
Invest from
$5K
Referred friends can get up to $500 by making a deposit of cash or securities.
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
Auto investing, human assistance when required
Supported by dedication to low-cost solutions
Automatic tax-loss harvesting
See inside MoneyMade’s 6-figure multi-asset portfolio
6-Figures
12+ Assets
50+ Platforms
4yr+ Returns
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
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
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Reviews (2)
I’m invested in Schwab IP starting in 2019 and have remained in to date. There are multiple investment strategies and levels of equity investment which offers some customization. My returns in the good year were much less than the market, but my losses in 2022 were also less than the overall market and fixed income
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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