Schwab Intelligent Portfolios 2021 Review


Schwab Intelligent Portfolios lets investors put their money to work in a portfolio of exchange-traded funds, or ETFs. These allow for diversified exposure to stocks, bonds, and other asset classes, and with a bare minimum of expense. Schwab uses just over 50 different ETFs in its automated portfolios, many of which are Schwab’s own funds.

Basically, investors complete a short questionnaire that helps Schwab determine their risk tolerance and investment objectives, and the robo-advisor does the rest.

Services offered

When it comes to services and features, Schwab is among the best robo-advisors on the market.

Schwab Intelligent Portfolios monitors client accounts daily and automatically rebalances as needed. In other words, if your initial questionnaire determines that you should have 50% of your money in stock-based ETFs and another 50% in bond-based ETFs, the platform will periodically buy and sell investments on your behalf in order to maintain this desired allocation.

Schwab is also one of the few robo-advisors that offer free and automatic tax-loss harvesting to clients. This is only offered to clients with $50,000 or more of invested assets, but can be a major benefit to investors with large accounts or who are in high tax brackets.

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In addition, Schwab’s Intelligent Income feature is a big differentiator, especially for clients who are at or near retirement age. This helps clients set up a recurring monthly withdrawal and automatically makes these withdrawals in the most tax-friendly manner possible. It also provides guidance on how much a client can safely withdraw and how much they need to withdraw from retirement accounts to satisfy required minimum distribution (RMD) rules.

Pricing and fees

As mentioned, Schwab Intelligent Portfolios is among the cheapest robo-advisor platforms on the market. With no account management fees and minimal investment expenses, investors get to keep more of their returns than they would with some of its rivals.

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