Charles Schwab Intelligent Portfolios Performance Review 2020: Fees, Returns, Robo Investing Services & Competitors

schwab intelligent robo advisor

Robo advisors are increasingly growing in popularity, and these automated services are threatening to take huge amounts of business away from traditional financial advisors.

Multiple different segments of the investing public have already taken advantage of robo advisors for a variety of reasons. Many traditional financial advisors have decided to work cooperatively with robo advisors rather than try to compete with them directly, and this strategy has helped streamline the process and reduce costs.

Millennials use robo advisors because they remove the perceived “guess work” out of investing, which provides a measure of comfort to hesitant millennial investors. And often, robo advisors offer cheaper fees than human advisors, which also makes them attractive to this group.

And retirees and high net worth individuals can often test robo advisors because they have more disposable income.

But which robo advisor should you use?

To help you narrow down the choices, BI Intelligence, Business Insider’s premium research service, has decided to review some of the most popular robo advisors on the market to help you make the most informed decision.

In this article, we’ll cover the Schwab Intelligent Portfolio from Charles Schwab.

Schwab Intelligent Portfolio Review Summary
Fees & Pricing
AUM, Returns, & Portfolio Performance
Services Provided
More Information

Schwab Intelligent Portfolio Review Summary

The Schwab Intelligent Portfolio is a quality robo advisor that deserves your consideration, but it has flaws. It charges no fees, but the trade off is it often allocates too much of your investment to cash and selects some questionable ETFs to do so.

Assets Under Management (AUM): $10.2 billion (as of Q3 2016)
2016 Returns:
Minimum Account Balance: $5,000
Fee Range: 0.08% to 0.24%
Account Types: Individual Accounts, Joint Accounts, Traditional IRA, Roth IRA, Rollover IRA, Custodial Accounts and Trusts
Services: Automatic rebalancing, Tax-loss harvesting (only for accounts with $50,000 or more), Mobile App

Schwab Intelligent Portfolio Fees & Pricing

Schwab Intelligent Portfolio does not charge any management fees or commissions, nor does it charge account fees. However, customers must pay expense ratios based on the investments. Despite this, Schwab calculates that the weighted average for each risk level is as follows:

Conservative portfolio: 0.08%

Moderate-risk portfolio: 0.19%

Aggressive portfolio: 0.24%

These fees, even at the “aggressive” level, are competitive and favorable when compared to other robo advisors on the market, particularly because many of Schwab’s competitors charge a management fee on top of these investment fees.

Schwab Intelligent Portfolio AUM, Returns, & Portfolio Performance

Schwab Intelligent Portfolio had $10.2 billion in AUM as of the end of the third quarter of 2016. At the end of that quarter, and the year-to-date, all of the robo advisors portfolios across the entire risk spectrum had delivered positive returns. The approximate breakdown for the YTD was as follows:

Fundamental Indexing
U.S. Large Cap: 10%
U.S. Small Cap: 12.5%
International Large Cap: 5%
International Small Cap: 10%
Emerging Markets: 27.5%
Market-Cap Indexing
U.S. Large Cap: 7.5%
U.S. Small Cap: 12%
International Large Cap: 2%
International Small Cap: 5%
Emerging Markets: 16%

Schwab Intelligent Portfolio Services

One of the biggest selling points for Schwab Intelligent Portfolio is its customization. Investors answer several questions about their financial goals, timeline, and risk tolerance, and the robo advisor then …read more

Source:: Businessinsider – Finance


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