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Welcome USAA members.
Take the next step toward your tomorrow with Schwab.

Schwab Intelligent Portfolios®

Welcome to automated investing, where our robo-advisor can help build and manage your portfolio.

Upbeat music plays throughout. 

The Charles Schwab logo fades in on an all-white screen. 

The logo slides off screen to the left. Text slides in from the right: We all have our reasons to invest 

We all have our reasons to invest, whether that’s planning for your retirement, buying a home, or even saving for college. 

An orange line extends to the right from the text. Footage of a retired couple looking at a phone together slides in from the right, and the line animates into the background. Additional colors are revealed as it travels to the right of the screen. Text fades on to the scene: Retirement

We cut to a new scene of a young couple decorating a living room. The multicolored line animates from the left of the screen to the right. Text fades on above the line: Buying a home

Schwab Intelligent Portfolios makes it simple to invest towards your goals by building, monitoring, and automatically rebalancing your portfolio—so you don't have to. 

We cut to a white screen and see the multicolored line animate on from the left side of the screen. It then forms a circle, and text fades in within: Schwab Intelligent Portfolios® 

Getting started is easy. 

We cut to a scene of a laptop on a desk next to a steaming cup of coffee. On the monitor, we see the Schwab Intelligent Portfolios circle. 

First, tell us about your goal, risk tolerance, timeline, and how much you plan to invest.

We cut to a scene of a woman at her laptop. On the left half of the screen, we see a graphic animate on. At the top is the text: Please tell us about your goal for this account

Below are four options with corresponding icons: 

Retirement

Upcoming expenses

Something special

Rainy day fund

Next, based on your answers, we’ll provide you a diversified portfolio of ETFs from more than 80 variations tailored to your preferences. 

We cut to a different angle of the same woman at her laptop and see her pick up a glass of tea and take a sip. The same multicolored line animates in vertically with colors and labels for each section: 

Fixed income

Cash

Commodities

Stocks

The line collapses down and the text fades away. Then a circle animates on in the same colors as the previous line. Text fades within the circle, counting up to: 80+ Variations The text then transitions to say: My Portfolio

From there, our innovative robo-advisor monitors and automatically rebalances your portfolio as needed... 

We cut to a scene of two parents and a child playing with some drawings. The same graphic of the multicolored circle with the My Portfolio text animates on in the top right corner. The multicolored sections gently shift, representing the rebalancing occurring. 

…while our team of experienced analysts keeps a careful watch on the selected ETFs to ensure your portfolio remains aligned with your risk profile. 

We cut to a close-up of a laptop. We see the multicolored line animate on in the Schwab Intelligent Portfolios platform.


At any time, you can log in to your personal dashboard to see your progress or make updates.

We cut to the young couple sitting on the floor of their living room, looking at a laptop together. A graph animates on behind them. A dotted line curving up to the y axis is labeled Goal. Another dot animates up the y axis, passes the Goal dot, and stops above the Goal dot. A label reveals showing the dot represents Projected Balance. Then a badge animates on to the left with the text: Build Wealth Goal On Target next to a piggybank icon. The bottom of the screen shows For illustrative purposes only.

If it looks like your goal is off target, we’ll provide suggestions to get you back on track. 

And if you’re investing fifty thousand dollars or more, you may also choose to activate our automatic tax-loss harvesting feature, potentially helping you offset the taxes on investment gains.

We cut to another angle of the same scene where we can see the laptop on the floor. We see chart lines animate on. A badge with a toggle animates on that says: Tax-loss Harvesting. The toggle switches from off to on. 

Looking for additional support on your investing journey? You can enroll in Schwab Intelligent Portfolios Premium for unlimited one-on-one guidance from a CERTIFIED FINANCIAL PLANNER professional who can answer specific questions about your financial plan. 

We cut to a scene of the young father in conversation with someone on his tablet. We then see the tablet monitor showing the Schwab Intelligent Portfolios platform and a CERTIFIED FINANCIAL PLANNER professional talking in a pop-up window. 

And if you want to use your automated investing account to pay yourself in retirement, you can add the Schwab Intelligent Income feature to automatically generate a monthly paycheck. 

We cut to a scene of a retired couple looking at a tablet together. Graphics appear on the right side of the screen. The header is Schwab Intelligent Income. There are several blank fields where we see information entered in, including: Total Investment Amount, age, and withdrawal goal. There are also images for Projected balance and Adjust your portfolio

Whatever your financial goal is, from planning a summer vacation to investing for your retirement, Schwab Intelligent Portfolios can make it easier for you to get there. 

We cut to the first woman shown, standing on a beach at sunset. The multicolored line animates in from the left behind her. We cut to a white background and see the line enter from the left and form a circle and text fade in: Schwab Intelligent Portfolios® 

Start your automated investing journey by opening an account today.

The circle then unravels and animates off to the right of the screen. The Charles Schwab logo fades in, shrinks, and slides to the top of the screen as the following disclosures fade onto screen:

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Please read the Schwab Intelligent Portfolios Solutions disclosure brochures for important information, pricing, and disclosures relating to Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium programs.

Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium® are made available through Charles Schwab & Co., Inc. (“Schwab”), a dually registered investment advisor and broker-dealer. [Portfolio management services are provided by Charles Schwab Investment Management, Inc. (“CSIM”). Schwab and CSIM are subsidiaries of The Charles Schwab Corporation.]

There is no advisory fee or commissions charged for Schwab Intelligent Portfolios. For Schwab Intelligent Portfolios Premium, there is an initial planning fee of $300 upon enrollment and a $30-per-month advisory fee charged on a quarterly basis as detailed in the Schwab Intelligent Portfolios Solutions disclosure brochures. Investors in Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium (collectively, “Schwab Intelligent Portfolios Solutions”) do pay direct and indirect costs. These include ETF operating expenses which are the management and other fees the underlying ETFs charge all shareholders. Schwab does not charge an advisory fee for the SIP Program in part because of the revenue Schwab Bank generates from the cash allocation (an indirect cost of the Program). The portfolios include a cash allocation to FDIC‐insured Deposit Accounts at Charles Schwab Bank, SSB ("Schwab Bank"). Schwab Bank earns income on the deposits, and earns more the larger the cash allocation. The lower the interest rate Schwab Bank pays on the cash, the lower the yield. Some cash alternatives outside of Schwab Intelligent Portfolios Solutions pay a higher yield. Schwab Intelligent Portfolios Solutions invests in Schwab ETFs. A Schwab affiliate, Charles Schwab Investment Management Inc., receives management fees on those ETFs. Schwab Intelligent Portfolios Solutions also invests in third-party ETFs. Schwab receives compensation from some of those ETFs for providing shareholder services, and also from market centers where ETF trade orders are routed for execution. Fees and expenses will lower performance, and investors should consider all program requirements and costs before investing. Expenses and their impact on performance, conflicts of interest, and compensation that Schwab and its affiliates receive are detailed in the Schwab Intelligent Portfolios Solutions disclosure brochures.

Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium® are designed to monitor portfolios on a daily basis and will also automatically rebalance as needed to keep the portfolio consistent with the client’s selected risk profile. Trading may not take place daily.

Diversification, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses.

Tax-loss harvesting is available for clients with invested assets of $50,000 or more in their account. Clients must choose to activate this feature.

Schwab Intelligent Income® is an optional feature for clients to receive recurring automated withdrawals from their accounts. Schwab does not guarantee the amount or duration of withdrawals nor does it guarantee meeting Required Minimum Distributions. You may incur IRS penalties for early withdrawal of funds depending on the account type.

© 2024 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. Unauthorized access is prohibited. Usage will be monitored. (0324-KZHJ)

Video Transcript

Watch how it works

Upbeat music plays throughout. 

The Charles Schwab logo fades in on an all-white screen. 

The logo slides off screen to the left. Text slides in from the right: We all have our reasons to invest 

We all have our reasons to invest, whether that’s planning for your retirement, buying a home, or even saving for college. 

An orange line extends to the right from the text. Footage of a retired couple looking at a phone together slides in from the right, and the line animates into the background. Additional colors are revealed as it travels to the right of the screen. Text fades on to the scene: Retirement

We cut to a new scene of a young couple decorating a living room. The multicolored line animates from the left of the screen to the right. Text fades on above the line: Buying a home

Schwab Intelligent Portfolios makes it simple to invest towards your goals by building, monitoring, and automatically rebalancing your portfolio—so you don't have to. 

We cut to a white screen and see the multicolored line animate on from the left side of the screen. It then forms a circle, and text fades in within: Schwab Intelligent Portfolios® 

Getting started is easy. 

We cut to a scene of a laptop on a desk next to a steaming cup of coffee. On the monitor, we see the Schwab Intelligent Portfolios circle. 

First, tell us about your goal, risk tolerance, timeline, and how much you plan to invest.

We cut to a scene of a woman at her laptop. On the left half of the screen, we see a graphic animate on. At the top is the text: Please tell us about your goal for this account

Below are four options with corresponding icons: 

Retirement

Upcoming expenses

Something special

Rainy day fund

Next, based on your answers, we’ll provide you a diversified portfolio of ETFs from more than 80 variations tailored to your preferences. 

We cut to a different angle of the same woman at her laptop and see her pick up a glass of tea and take a sip. The same multicolored line animates in vertically with colors and labels for each section: 

Fixed income

Cash

Commodities

Stocks

The line collapses down and the text fades away. Then a circle animates on in the same colors as the previous line. Text fades within the circle, counting up to: 80+ Variations The text then transitions to say: My Portfolio

From there, our innovative robo-advisor monitors and automatically rebalances your portfolio as needed... 

We cut to a scene of two parents and a child playing with some drawings. The same graphic of the multicolored circle with the My Portfolio text animates on in the top right corner. The multicolored sections gently shift, representing the rebalancing occurring. 

…while our team of experienced analysts keeps a careful watch on the selected ETFs to ensure your portfolio remains aligned with your risk profile. 

We cut to a close-up of a laptop. We see the multicolored line animate on in the Schwab Intelligent Portfolios platform.


At any time, you can log in to your personal dashboard to see your progress or make updates.

We cut to the young couple sitting on the floor of their living room, looking at a laptop together. A graph animates on behind them. A dotted line curving up to the y axis is labeled Goal. Another dot animates up the y axis, passes the Goal dot, and stops above the Goal dot. A label reveals showing the dot represents Projected Balance. Then a badge animates on to the left with the text: Build Wealth Goal On Target next to a piggybank icon. The bottom of the screen shows For illustrative purposes only.

If it looks like your goal is off target, we’ll provide suggestions to get you back on track. 

And if you’re investing fifty thousand dollars or more, you may also choose to activate our automatic tax-loss harvesting feature, potentially helping you offset the taxes on investment gains.

We cut to another angle of the same scene where we can see the laptop on the floor. We see chart lines animate on. A badge with a toggle animates on that says: Tax-loss Harvesting. The toggle switches from off to on. 

Looking for additional support on your investing journey? You can enroll in Schwab Intelligent Portfolios Premium for unlimited one-on-one guidance from a CERTIFIED FINANCIAL PLANNER professional who can answer specific questions about your financial plan. 

We cut to a scene of the young father in conversation with someone on his tablet. We then see the tablet monitor showing the Schwab Intelligent Portfolios platform and a CERTIFIED FINANCIAL PLANNER professional talking in a pop-up window. 

And if you want to use your automated investing account to pay yourself in retirement, you can add the Schwab Intelligent Income feature to automatically generate a monthly paycheck. 

We cut to a scene of a retired couple looking at a tablet together. Graphics appear on the right side of the screen. The header is Schwab Intelligent Income. There are several blank fields where we see information entered in, including: Total Investment Amount, age, and withdrawal goal. There are also images for Projected balance and Adjust your portfolio

Whatever your financial goal is, from planning a summer vacation to investing for your retirement, Schwab Intelligent Portfolios can make it easier for you to get there. 

We cut to the first woman shown, standing on a beach at sunset. The multicolored line animates in from the left behind her. We cut to a white background and see the line enter from the left and form a circle and text fade in: Schwab Intelligent Portfolios® 

Start your automated investing journey by opening an account today.

The circle then unravels and animates off to the right of the screen. The Charles Schwab logo fades in, shrinks, and slides to the top of the screen as the following disclosures fade onto screen:

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Please read the Schwab Intelligent Portfolios Solutions disclosure brochures for important information, pricing, and disclosures relating to Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium programs.

Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium® are made available through Charles Schwab & Co., Inc. (“Schwab”), a dually registered investment advisor and broker-dealer. [Portfolio management services are provided by Charles Schwab Investment Management, Inc. (“CSIM”). Schwab and CSIM are subsidiaries of The Charles Schwab Corporation.]

There is no advisory fee or commissions charged for Schwab Intelligent Portfolios. For Schwab Intelligent Portfolios Premium, there is an initial planning fee of $300 upon enrollment and a $30-per-month advisory fee charged on a quarterly basis as detailed in the Schwab Intelligent Portfolios Solutions disclosure brochures. Investors in Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium (collectively, “Schwab Intelligent Portfolios Solutions”) do pay direct and indirect costs. These include ETF operating expenses which are the management and other fees the underlying ETFs charge all shareholders. Schwab does not charge an advisory fee for the SIP Program in part because of the revenue Schwab Bank generates from the cash allocation (an indirect cost of the Program). The portfolios include a cash allocation to FDIC‐insured Deposit Accounts at Charles Schwab Bank, SSB ("Schwab Bank"). Schwab Bank earns income on the deposits, and earns more the larger the cash allocation. The lower the interest rate Schwab Bank pays on the cash, the lower the yield. Some cash alternatives outside of Schwab Intelligent Portfolios Solutions pay a higher yield. Schwab Intelligent Portfolios Solutions invests in Schwab ETFs. A Schwab affiliate, Charles Schwab Investment Management Inc., receives management fees on those ETFs. Schwab Intelligent Portfolios Solutions also invests in third-party ETFs. Schwab receives compensation from some of those ETFs for providing shareholder services, and also from market centers where ETF trade orders are routed for execution. Fees and expenses will lower performance, and investors should consider all program requirements and costs before investing. Expenses and their impact on performance, conflicts of interest, and compensation that Schwab and its affiliates receive are detailed in the Schwab Intelligent Portfolios Solutions disclosure brochures.

Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium® are designed to monitor portfolios on a daily basis and will also automatically rebalance as needed to keep the portfolio consistent with the client’s selected risk profile. Trading may not take place daily.

Diversification, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses.

Tax-loss harvesting is available for clients with invested assets of $50,000 or more in their account. Clients must choose to activate this feature.

Schwab Intelligent Income® is an optional feature for clients to receive recurring automated withdrawals from their accounts. Schwab does not guarantee the amount or duration of withdrawals nor does it guarantee meeting Required Minimum Distributions. You may incur IRS penalties for early withdrawal of funds depending on the account type.

© 2024 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. Unauthorized access is prohibited. Usage will be monitored. (0324-KZHJ)

Our robo-advisor does the work, so you don't have to.

Automated investing with human help when you need it.

  • Our robo-advisor builds, monitors, and automatically rebalances a diversified portfolio based on your goals.
     
  • 24/7 live support from U.S.-based service professionals.
     
  • Get started with as little as $5,000.

Backed by our commitment to keeping costs low.

  • Pay no advisory fee and no commissions.
     
  • Invest in a portfolio of low-cost exchange-traded funds Tooltip (ETFs).
     
  • Just as if you'd invested on your own, you will pay the operating expenses on the ETFs in your portfolio, which includes Schwab ETFs™.
     

What else you should know.

We 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. See more information. Tooltip

How Schwab Intelligent Portfolios works:

1. Complete a short questionnaire to establish your goals, risk tolerance, and timeline.

2. Get a diversified portfolio of ETFs chosen by experts.

3. Our robo-advisor monitors your portfolio daily and automatically rebalances it as needed.

Ready to put our robo-advisor to work?

Compare Schwab Intelligent Portfolios to others

Compare Schwab Intelligent Portfolios to others

Compare Schwab Intelligent Portfolios to others
Schwab Intelligent Portfolios® J.P. Morgan Automated Investing
(Closing Q2 2024)1
Betterment Digital Wealthfront
Fidelity Go® E*TRADE Core Portfolios
Advisory fees  No advisory fee charged 0.35%* 0.25% 0.25% No advisory fee <$25,000

0.35% per year $25,000+
0.30%
Tax-loss harvesting Tooltip
24/7 phone and live chat support from U.S.-based service professionals
Option to access a CFP® Professional Tooltip for an additional cost   
(Schwab Intelligent Portfolios Premium®)
 
(Betterment Premium)
 

Just as if you'd invested on your own, you will pay the operating expenses on the ETFs in your portfolio, which includes Schwab ETFs™.

We 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. See more information.

Competitors' information obtained from their respective websites as of 4/5/23. Pricing and offers are subject to change without notice.

1J.P. Morgan information obtained from the Chase website as of 12/10/23. A 12/12/23 Barron's article stated that J.P. Morgan plans to discontinue its purely digital robo-advisor in the second quarter of 2024 and that it is no longer taking on new customers.

*ETF expenses paid to J.P. Morgan will be rebated or offset against the advisory fee.

Set your goals and start reaching for them.

Our robo-advisor can help you invest for retirement, college, vacations, building long-term wealth, or creating a sustainable income stream. Here's what you get with Schwab Intelligent Portfolios.

A diversified portfolio, tailored to your needs.

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:

  • 51 ETFs Selected and monitored by Schwab experts that span 20+ Expanded Asset Classes Tooltip
  • 3 Investment Strategies Tooltip Global, U.S. Focused, Income Focused
  • 6 Risk Profiles Tooltip Ranging from Conservative to Aggressive Growth

Want to see the historical average returns and asset allocations of our portfolios?

Automatic rebalancing.

Our robo-advisor technology monitors and automatically rebalances your investments to help keep you diversified and on track.

Tax efficiency.

If an investment declines in value, our automatic tax-loss harvesting can help you offset the taxes on investment gains.

View important information on tax-loss harvesting. Tooltip

A range of accounts.

There are different account types to choose from, including brokerage, IRA, custodial, and trust accounts.

Looking for professional guidance to help you reach your goals?

Add Schwab Intelligent Portfolios Premium® and get:

  • Unlimited 1:1 guidance from a CERTIFIED FINANCIAL PLANNER™ professional.
  • A digital financial plan that provides a customized roadmap for reaching your goals.
  • Interactive online planning tools.

Ready to get started?

Compare us with other firms

Common questions

Getting started

You can open a Schwab Intelligent Portfolios account with a minimum of $5,000.

You can have the following account types:

  • Taxable: Individual, Joint Tenant, Tenants in Common, Community Property, Custodial, Revocable Living Trust
  • Tax-Advantaged: Traditional IRA, Roth IRA, Rollover IRA, Inherited IRA, SEP-IRA, SIMPLE IRA 

Of course! After considering your options you can choose a Rollover or Roth IRA account, these rollovers are as simple as contacting your former employer plan administrator or custodian and telling them you want a direct rollover of your plan assets.

Next Steps

  • Complete any forms required by your plan administrator or custodian.
  • Decide how you want your retirement assets distributed.
  • Your Schwab rollover specialist can assist you with questions depositing funds into your Schwab Intelligent Portfolios IRA.

Tips:

  • To prevent funds from being taxed, the check should be made payable to "Charles Schwab & Co., Inc., FBO (Your Name)."
  • For an easy deposit, give your employer your Schwab Intelligent Portfolios IRA account number and ask them to include it on the check.
  • Instruct your plan administrator or custodian to mail the check to: Charles Schwab & Co., Inc., P.O. Box 628291, Orlando, FL 32862-8291.

If you need help, give us a call at 866-855-9102 to talk to a Rollover Consultant. If you are currently a Schwab Plan participant, please call 800-724-7526.

First, you should identify if you want to enroll a taxable or tax-advantaged account into Schwab Intelligent Portfolios. You can see the types of accounts commonly used below. You will need to have this information when you are completing the online questionnaire to receive a portfolio recommendation. 

  • Taxable: Individual, Joint Tenant, Tenants in Common, Community Property, Custodial, Revocable Living Trust
  • Tax-Advantaged: Traditional IRA, Roth IRA, Rollover IRA, Inherited IRA, SEP-IRA, SIMPLE IRA 

To start the process, visit intelligent.schwab.com and log in. Select Open Account in the left rail. You will enter the online questionnaire to build your portfolio. After you answer all the questions, you will receive a portfolio recommendation. On the next page, select Schwab Intelligent Portfolios, and you will begin the account enrollment process. You will be presented with two options—"Open a new account" or "Enroll an existing Schwab account." Select the latter. On the next page, you will have the ability to select the Schwab account you would like to enroll. Once you follow the prompts to review the appropriate disclosures, your account will be enrolled into Schwab Intelligent Portfolios, and your funds will likely be liquidated from your existing Schwab account and invested into your Schwab Intelligent Portfolios account within 3-5 days.  

Note: if you are interested in a Schwab Intelligent Portfolios Premium account, you'll first need to enroll in a Schwab Intelligent Portfolios account then select "Explore Premium" in the left navigation after log in.

Yes, you can withdraw cash from your account at any time by logging in and selecting "Add/Withdraw Money." If the requested amount is less than the cash allocation in your portfolio, you can transfer it to another Schwab account immediately or to a linked external account overnight. If the withdrawal request exceeds your portfolio's cash allocation, we will sell ETFs to generate the requested amount of cash. The processing and settlement takes between 4-6 business days.

After your withdrawal, your portfolio will be rebalanced to its target asset allocation if it has drifted significantly from the portfolio's original target. Your withdrawal may also cause your account to become ineligible for tax-loss harvesting if you have enrolled in the service and your account falls below the $40,000 minimum.

No, beneficiaries are unique to each account number. You will need to establish new beneficiary instructions for any account you open.

Log in to Schwab.com and navigate to Service > My Profile > Beneficiaries. On this page you can manage your beneficiaries for your eligible accounts.

Costs & fees

You pay no advisory fee and no commissions. Your diversified portfolio is comprised of low-cost exchange-traded funds (ETFs) and a cash allocation. Just as if you'd invested on your own, you will pay the operating expenses on the ETFs in your portfolio—which includes Schwab ETFs. We 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.

We are committed to keeping fees low to help you achieve your goals. It starts with not charging an advisory fee or commissions. We can do that because we earn revenue from other sources as detailed below.

  • 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: We 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.

Yes, the interest rate on cash balances in the Sweep Program is set on the first business day of each month equal to the seven-day yield (with waivers) for the Schwab Government Money Fund – Sweep Shares (symbol: SWGXX) as determined at the end of the prior month. See Current Interest Rates for more details. Some cash alternatives outside of the program pay a higher yield.

No, Schwab Intelligent Portfolios has leveraged the power of technology to automate these complex tasks.

Tax-loss harvesting is available for taxable portfolios with $50,000 or more, and there are no additional fees for activating this feature in your account. You must be enrolled for tax-loss harvesting to occur.

Portfolio construction & ETFs

An ETF, or exchange-traded fund, is a basket of securities that gives you exposure to a particular asset class, industry, commodity, or region. We like them because they offer similar diversification as an index mutual fund but unlike index mutual funds, ETFs can be traded at any time during the day. ETFs also offer exposure to a greater breadth of markets, are more transparent in terms of their underlying holdings, and tend to be more tax efficient and low cost.

Both Schwab ETFs™ and third-party ETFs are filtered through a carefully selected set of stringent criteria. This ensures that all ETFs chosen for Schwab Intelligent Portfolios deliver both diversity and cost efficiency.

These selection criteria help pare down more than 2,000 ETFs to the 51 that could potentially be part of your Schwab Intelligent Portfolios account. So, let's examine those criteria and see how that works.

Eschewing risk. Any nonstandard ETFs are eliminated—that is, ETFs that are inverse and leveraged, actively managed, that invest only in one country, or those that have less than three months of history, among other factors.

Size matters. Next, all ETFs without sufficient assets under management are stripped out, because ETFs without sufficient assets are at greater risk of closing.

Monitoring consistency. Schwab Intelligent Portfolios ETFs must closely track the indexes our asset allocation models are based on. This measure is not whether the fund outperforms the benchmark, but rather the degree to which it approximates the index and is a good representation of the asset class.

Low OERs are key. Finally, the selection process focuses on ETFs with low operating expense ratios (OERs) while also meeting the size, tracking, and bid-ask spread criteria. (Source: "How to Choose an Exchange-Traded Fund (ETF)," The Wall Street Journal How-To Guide.)

After the ETFs are chosen, Charles Schwab Investment Management, Inc. ("CSIM") monitors their performance quarterly. CSIM also reviews the ETF selection annually to make sure the ETFs available for Schwab Intelligent Portfolios continue to meet the criteria described above, and can provide consistency and diversity.

Please visit the Schwab Intelligent Portfolios Selection Process page for more information and a representative list of ETFs used in Schwab Intelligent Portfolios.

Asset allocation is the foundation of every well-constructed investment portfolio and is at the heart of the advice we at Schwab give when advising clients on their total portfolio. Because it is so important, we have dedicated an entire team of Charles Schwab Investment Management, Inc. ("CSIM"), experienced analysts to continually use state-of-the-art research and evolve our approach to creating asset allocations designed to improve outcomes for individual investors.

Learn More:
Schwab Intelligent Portfolios™ Asset Allocation White Paper
High-Yield Bonds: Why "Risky" Asset Classes Can Help Diversify Risk

The appropriate asset allocation differs from person to person depending on their situation, risk tolerance, and time frame for their investing goals. The table below shows a sample asset allocation for three individual investors ranging from aggressive to conservative.

  • Investor 1: A 30-year old who sees herself as aggressive and is saving for retirement. This investor clearly has a long investment horizon (both for starting to withdraw from this portfolio and the period over which she would need to withdraw). The primary goal is capital appreciation (growth), and her investment strategy is Global Aggressive Growth with Taxable Bonds. 
     
  • Investor 2: A 40-year-old father whose tolerance for fluctuations in his portfolio value is above average and is using this account to save for the college expenses of his 3-year-old twins. His goal is a combination of capital appreciation, income and being somewhat defensive. His investment strategy is Global Moderate Growth with Taxable Bonds.  
     
  • Investor 3: A tax-sensitive 65-year-old retired investor who is living off her portfolio and wants to reduce portfolio volatility. Her primary goal is to generate adequate income starting now, with some potential for capital appreciation to sustain the portfolio over a long-term. Her investment strategy is Income Focused Moderately Conservative with National Muni Bonds. 
 Investor 1Investor 2Investor 3
Stocks88.0%57.0%27.0%
US Large Company Stocks15.0%10.0%0.0%
US High Dividend Stocks0.0%0.0%12.0%
US Large Fundamental10.0%7.0%0.0%
US Small Company Stocks10.0%7.0%0.0%
US Small Fundamental7.0%5.0%0.0%
International Developed Large Company Stocks6.0%4.0%0.0%
International Developed Large Fundamental9.0%5.0%0.0%
International Developed Small Company Stocks4.0%2.0%0.0%
International Developed Small Fundamental6.0%4.0%0.0%
International High Dividend Stocks0.0%0.0%12.0%
International Emerging Market Stocks7.0%4.0%0.0%
International Emerging Market Fundamental10.0%7.0%0.0%
US Exchange Traded REITs2.0%1.0%2.0%
International Exchange Traded REITs2.0%1.0%1.0%

 

 Investor 1Investor 2Investor 3
Fixed Income3.1%31.5%58.0%
US Treasuries0.0%2.0%0.0%
US Investment Grade Corporate Bonds3.1%12.0%0.0%
US Securitized Bonds0.0%3.0%0.0%
US Inflation Protected Bonds0.0%12.5%20.0%
International Developed Country Bonds0.0%0.0%2.0%
US Corporate High Yield Bonds0.0%1.0%1.0%
International Emerging Market Bonds0.0%1.0%1.0%
Investment Grade Muni Bonds0.0%0.0%31.0%
Preferred Stocks0.0%0.0%1.0%
Bank Loan and other Floating Rate Notes0.0%0.0%2.0%

 

 Investor 1Investor 2Investor 3
Commodities2.0%1.0%0.0%
Gold & Other Precious Metals2.0%1.0%0.0%

 

 Investor 1Investor 2Investor 3
Cash6.9%10.5%15.0%

Learn more by visiting this asset allocation white paper.

Cash investments play an important role within a well-diversified portfolio and serve several purposes, including:

  • Greater stability
  • Liquidity
  • Diversification
  • Potential inflation protection

A cash allocation provides stability to help mitigate downside risk. Lower portfolio risk can help moderate downturns and keep investors focused on their longer-term goals. Cash allocations are determined according to an investor's risk profile, with the most risk-averse or short-term portfolios holding the highest levels of cash and the least risk-averse or longer term ones holding the lowest levels of cash.

Cash in Schwab Intelligent Portfolios provides an additional layer of stability in the form of FDIC insurance of up to $250,000 per depositor as it is "swept" into deposit accounts at Schwab Bank, where it also earns a market rate of interest for highly liquid cash investments.

Portfolio management

An automated system monitors your portfolio closely—this includes:

  • Rebalancing as needed: Your portfolio won't trade every day, however we perform daily check-ins. When an asset class exceeds its allocated portion in your portfolio, the excess ETF shares are sold, and the proceeds are used to buy positions that have fallen below their target percentage; this keeps your portfolio consistent with your Investor Profile.
  • Professional oversight: Periodic evaluations are performed to ensure that your asset allocation represents the right mix of risk and return. The ETFs included in Schwab Intelligent Portfolios are also evaluated to ensure that they continue to meet the stringent selection criteria.
  • Tax-loss harvesting: If you have an account with $50,000 or more in assets, and you've elected to automate tax-loss harvesting, your account will be tracked daily for opportunities to offset capital gains by strategically realizing losses.

Every portfolio has a target asset allocation—a combination of stocks, bonds, commodities and cash determined by the investor's stated goals, risk tolerance and time horizon. Over time, however, contributions/withdrawals, gains, and losses cause your portfolio to stray from the original target and become unbalanced.

The solution is rebalancing—the act of periodically buying or selling assets to restore your portfolio to its original target allocations. Schwab Intelligent Portfolios automatically rebalances accounts thanks to an algorithm that adjusts your account when an asset class shifts above or below its target range.

Learn More:
Rebalancing and Tax-Loss Harvesting in Schwab Intelligent Portfolios

The primary purpose of rebalancing is to keep your portfolio's asset allocation consistent with your targeted level of risk as markets fluctuate over time. The recommended allocation for your portfolio is based on your goal, time horizon, and risk profile.

Schwab Intelligent Portfolios are monitored and automatically rebalanced as needed to keep the allocation consistent with the client's risk profile as markets fluctuate over time. Portfolio allocations are not adjusted tactically based on short-term views about the markets. In a normal environment, rebalancing happens a few times per year; during more volatile times, don't be surprised if this number increases.

Tax-loss harvesting can help offset capital gains and lower your taxable income by automatically selling an ETF that has fallen enough below the price you paid for it and replacing it with an alternate ETF in the same asset class to keep your portfolio's allocation consistent.

Periods of elevated market volatility highlight the potential benefit of tax-loss harvesting as the number of these trades have historically surged when markets turn turbulent. The goal of the Schwab Intelligent Portfolios algorithm is to maintain a portfolio that closely tracks the investor's strategic asset allocation and captures tax-deductible losses while generally preventing wash sales in your account. As it’s a complicated and time-consuming process, Schwab Intelligent Portfolios has automated this process.

Learn more:
How Tax-Loss Harvesting Can Help Lower Your Tax Bill
Rebalancing and Tax-Loss Harvesting in Schwab Intelligent Portfolios

The Sweep Program is a feature that allows for the cash allocation in your Schwab Intelligent Portfolios account to earn interest by being "swept" to a FDIC-insured deposit account at Schwab Bank. The interest rate on cash balances in the Sweep Program is set on the first business day of each month equal to the seven-day yield (with waivers) for the Schwab Government Money Fund – Sweep Shares (symbol: SWGXX) as determined at the end of the prior month. See Current Interest Rates for more details. You can view the cash allocation on your portfolio dashboard at Intelligent.Schwab.com. You can withdraw cash from your Schwab Intelligent Portfolios account at any time by logging in to your account and requesting a transfer.