Schwab Managed Portfolios
Schwab Managed Portfolios™ provide professionally managed, broadly diversified portfolios of mutual funds or exchange-traded funds, with competitive fees and minimums as low as $25,000. Compare our model portfolios to learn more.
Managing risk is about more than timing moves in and out of the market. At Charles Schwab Investment Advisory, Inc., (CSIA) we believe that risk management begins with asset allocation. .
In fact, timing like that can add risk to a portfolio, not lessen it.
Risk management in our portfolios begins with asset allocation - that is, how we spread the portfolio across different types of investments and around the globe.
And, we build that asset allocation for today's world; not the markets of the 90's or early 2000's.
We do this by investing in US stocks and bonds as well as international stocks and bonds.
We invest in real assets such as gold, industrial metals, and US as well as international real estate.
Each of these investments is designed to tap into a specific source of risk or return.
The reason we use these broad groups of investments is because the risk in more traditional investment strategies tends to be driven almost entirely by equity risk - that is, the risk is coming from the stock portion of the portfolio.
So, even in a traditional balanced portfolio of 60% stocks and 40% bonds we have found that up to 99% of the risk - or 99% of variability in returns - comes from traditional stocks.
This factor alone can cause a pretty rocky ride for investors that we seek to smooth out.
So when we build a balanced portfolio today we use an expanded set of investments that give investors exposure to multiple sources of risk and return.
This is key, and to us the most important factor when it comes to managing risk.
What do I receive if Schwab Managed Portfolios are right for me?
Every Schwab Managed Portfolios account is managed by the investment professionals at Charles Schwab Investment Advisory. You'll get:
- Broad portfolio diversification to help manage risk and pursue growth
- Access to professionally managed portfolios designed for today’s volatile markets
- Exposure to a wide range of asset classes
- Ongoing investment monitoring and portfolio rebalancing
Schwab Managed Portfolios also come with a satisfaction guarantee: If you’re not completely satisfied, we’ll refund program fees for the previous quarter and work to address your concerns.
What is the minimum investment?
- Schwab Managed Portfolios – Mutual Funds: $25,000
- Schwab Managed Portfolios – ETFs: $25,000
Ready to get started?
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").
If at any time you are not completely satisfied with Schwab Managed Portfolios, at your request we’ll refund the program fee for the previous calendar quarter. The program fee is a percentage of the eligible assets in your Schwab Managed Portfolios account(s). You will receive a credit to your Schwab Managed Portfolios account(s) within approximately four weeks of your request. No other fees, commissions, charges, expenses, or market losses will be refunded. If we are unable to address your concerns after consulting with you and refunding your fee, we will help you find a more appropriate program or solution. Schwab reserves the right to change this guarantee in the future after providing notice. For additional information regarding program fees, please see the Schwab Managed Portfolios account application or Individual Retirement Account application, available at the time you enroll or upon your request. Guarantee is effective as of July 21, 2006.