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Portfolio Management

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WHAT YOU SHOULD KNOW

Layered fees can add up.

An account with management fees usually has two primary types of fees: the annual management fee charged for the management of the portfolio and the fees associated with the underlying investments in the portfolio. The annual management fee (usually based on a percentage of assets) varies by firm and the level of assets in your portfolio. The other costs are usually tied to the operating expenses of individual funds in the portfolio and commissions or transaction fees charged to buy and sell the underlying investments.



Impact of portfolio management fees

Hypothetical illustration based on a $100,000 investment with a 5% return.

After 10 years, layers of fees have accounted for a nearly 15% loss in net value.

0 2 4 6 8 10 Years Gross Value Minus Annual Management Fee Minus Operating Expenses Net Value $139,331 $162,889 $180,000 $140,000 $100,000 Tracking Portfolio Values $180,000 $140,000 $100,000 Tracking Portfolio Values 0 2 4 6 8 10 Years Gross Value Minus Annual Management Fee Minus Operating Expenses Net Value $162,889 $139,331

What can I do about this?

Review your statements carefully, looking beyond the annual management fee to assess what your total costs are. You can then evaluate the returns on your portfolio and the service you are receiving, to consider if what you’re paying is worth it.

Explore Schwab’s portfolio management solutions or call us at 877-789-6079.

Get clear on fees.

How are fees impacting your returns?

Find out by asking these key questions.

Questions? We’re ready to help.


Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).