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%
*Schwab Accountability Guarantee:
The guarantee applies to the following investment advisory services ("Participating Services") and associated program fees: (i) Schwab Private Client ("SPC"); (ii) Schwab Managed Portfolios™ ("SMP"); and (iii) Managed Account Connection® ("Connection") for accounts that are managed by investment advisors affiliated with Charles Schwab & Co., Inc. ("Schwab"): Windhaven Investment Management, Inc. ("Windhaven®"), ThomasPartners, Inc. ("ThomasPartners®"), and Charles Schwab Investment Management, Inc. ("CSIM").
The guarantee does not apply to (i) accounts managed by investment advisors that are not affiliated with Schwab; (ii) accounts managed by Schwab-affiliated advisors outside of the SPC, Connection, and SMP programs; or (iii) any other product or service made available by Schwab or its affiliates. SPC, SMP, and Connection are wrap fee programs sponsored by Schwab.
If at any time or for any reason you are not completely satisfied with a Participating Service, at your request Schwab will refund the associated program fee for the previous calendar quarter applicable to the Participating Service. The program fee is a percentage of the eligible assets in your Participating Service account(s). You will receive a credit to your Participating Service account(s) within approximately four weeks of your request. No other fees, commissions, charges, expenses, or market losses will be refunded. If Schwab is unable to address your concerns after consulting with you and refunding your program fee, Schwab will work with you to help meet your financial goals. Schwab reserves the right to change this guarantee in the future after providing notice. For additional information regarding associated program fees, please see the disclosure brochure for the Participating Service, available at the time you enroll or upon your request.
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.