Schwab Managed Portfolios – ETFs
Schwab Managed Portfolios™ – ETFs offer broadly diversified, professionally managed portfolios of ETFs designed to match your investment strategy and tolerance for risk. Each ETF portfolio is managed for you by the investment professionals at Charles Schwab Investment Advisory.
What do I receive if Schwab Managed Portfolios – ETFs are right for me?
- Twelve model portfolios to help you strike the right balance between income and growth
- Broad diversification that matches your objectives
- Exposure to a wide variety of asset classes, including real estate and commodities
- A wide range of securities within each asset class, through low-cost, diversified ETFs
- Ongoing professional management by experts who rebalance your portfolio regularly and provide regular updates
What are the fees and minimums?
- Investment minimum: $25,000
- Annual program fees:
- First $100,000: 0.90%
- Next $400,000: 0.75%
- Next $500,000: 0.65%
- Over $1,000,000: 0.50%
If you are not completely satisfied for any reason, at your request Charles Schwab & Co., Inc. ("Schwab") or Charles Schwab Bank ("Schwab Bank"), as applicable, will refund any eligible fee related to your concern within the timeframes described below. Two kinds of "Fees" are eligible for this guarantee: (1) asset-based "Program Fees" for the Schwab Private Client ("SPC"), Schwab Managed Portfolios ("SMP"), Schwab Intelligent Advisory ("SIA"), and Managed Account Connection ("Connection") investment advisory services sponsored by Schwab (together, the "Participating Services"); and (2) commissions and fees listed in the Charles Schwab Pricing Guide for Individual Investors and the Schwab Bank Deposit Account Pricing Guide (together, "Account Fees"). Program Fee refund requests must be received no later than the next calendar quarter after the Fee was charged. Account Fee refund requests must be received within one year of the date that the Fee was charged.
Program Fees are calculated as a percentage of eligible assets in Participating Service accounts. For more information about Program Fees, please see the disclosure brochure for the Participating Service, made available at enrollment or any time at your request. The Connection service includes only accounts managed by investment advisors affiliated with Schwab: Windhaven Investment Management, Inc., ThomasPartners, Inc., and Charles Schwab Investment Management, Inc. The guarantee does not cover Program Fees for accounts managed by investment advisors who are not affiliated with Schwab or managed by Schwab-affiliated advisors outside of the SPC, SMP, SIA and Connection services.
The guarantee is only available to current clients. Refunds will only be applied to the account charged and will be credited within approximately four weeks of a valid request. No other charges or expenses, and no market losses will be refunded. Other restrictions may apply. Schwab reserves the right to change or terminate the guarantee at any time.
Please read Schwab's Disclosure Brochure for important information and disclosures relating to Schwab Managed Portfolios.
Your account will be subject to a lower fee schedule than described in this brochure if (i) it is a retirement account subject to the Employee Retirement Income Security Act of 1974 or (ii) you or someone in your household (i.e., a person with the same last name living at the same address) opened an SMP account before January 1, 2013 and have continuously maintained at least one SMP account since the time of your initial SMP enrollment.
Diversification strategies do not ensure a profit and cannot protect against losses in a declining market.
Portfolio management for Schwab Managed Portfolios is provided by Charles Schwab Investment Advisory, Inc. ("CSIA"), an affiliate of Charles Schwab and Co., Inc. ("Schwab").
Ongoing investment income, capital gains, capital losses, and miscellaneous deductions for some commodity ETFs are reported annually on Schedules K-1, and when commodity ETFs are sold in a taxable account, proceeds will be reported on Form 1099B. Schedules K-1 are mailed separately to you each year and need to be included in your income tax return. In cases where the entity generating the Schedule K-1 files for a tax extension beyond April 15, you may receive your Schedule K-1 after the due date for your income tax return. Individual taxpayers who do not request a filing extension may need to file an amended return if they receive their Schedule K-1 after filing their original return (federal and state, if applicable). Also, gains and losses associated with some commodities may be taxed differently than standard short-term and long-term capital gains and losses. Please consult your professional tax advisor for help with your unique situation.