Schwab Intelligent Portfolios Review 2024

• About Schwab Intelligent Portfolios
• Overall Rating
• Pros and Cons
• Ways to Invest
• Fees
• FAQs
• How Schwab Intelligent Portfolios Compares
• Why You Should Trust Us

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

Charles Schwab Intelligent Portfolios considers your financial goals, the amount you're investing, time horizon, and risk tolerance to customize a diverse portfolio of low-cost ETFs (this also includes Schwab ETFs).

$5,000

0%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No advisory fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Automatic rebalancing; portfolio re-adjusts back to target allocation any time you withdraw or add funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. More than 51 ETFs available (including Schwab ETFs)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer support

• con icon Two crossed lines that form an 'X'. $5,000 minimum is on the higher side
• con icon Two crossed lines that form an 'X'. Tax-loss harvesting only available for those with $40,000 in their account

Schwab Intelligent Portfolios is one of the best robo-advisors for hands-off investors in search of automated investment portfolios and access to goal planning, multiple types of accounts, and features like tax-loss harvesting.

• Promotion: Referred users can get up to $1,000
• Mobile app ratings: 4.8 iOS/3.8 Android

Bottom line: Schwab Intelligent Portfolios is one of the best robo-advisors for hands-off investors in search of automated investment portfolios and access to goal planning, multiple types of accounts, and features like tax-loss harvesting. While it doesn't charge advisory fees, it has a relatively high account minimum, so it's not the best for those who don't have at least $5,000 to invest.

About Schwab Intelligent Portfolios

Schwab Intelligent Portfolios is one of the two automated investing accounts Charles Schwab offers. The platform comes in both web and mobile forms. It has a $5,000 minimum, which is higher than most robo-advisors on the market. But Schwab's lack of advisory fees makes up for it. 

The robo-advisor considers your financial goals, the amount you're investing, time horizon, and risk tolerance to customize a diverse portfolio of low-cost ETFs (this also includes Schwab ETFs). It also offers automatic rebalancing.

Schwab's other automated account, Schwab Intelligent Portfolios Premium, offers both automated advice and ongoing advisor guidance. But this account has a $25,000 minimum, and it charges a $300 one-time fee and $30 monthly advisory fee.

Schwab Intelligent Portfolios is available on both iOS and Android devices.

Quick tip: The best investment apps (such as E*TRADE and Fidelity Go) offer a range of investment types, account flexibility, and educational tools.

If you're new to investing, the best investment apps for beginners offer low fees, human advisor access, and more. 

Schwab Intelligent Portfolios: Overall Rating

Schwab Intelligent Portfolios Pros and Cons

Is Schwab Intelligent Portfolios Trustworthy?

Schwab Intelligent Portfolios itself doesn't have an individual Better Business Bureau profile, but the BBB gives Charles Schwab an A+ rating. Since its ratings range from A+ to F, this is the highest rating a company can receive.

Bureau ratings are mainly based on its opinion of how well a business interacts with its customers, but it also considers the following: type of business, time in business, customer complaint history, advertising issues, and licensing and government actions.

In June 2022, Charles Schwab settled a lawsuit with the SEC for charges accusing the business of hiding robo-advisor fees from its users. Charles Schwab neither admitted nor denied these claims, but agreed to pay a $187 million settlement.  

Ways to Invest with Schwab Intelligent Portfolios

Individual and Joint Brokerage Automated Accounts

When setting up Schwab Intelligent Portfolio you'll first need to figure out your initial investment amount, goals, risk tolerance, and time horizon (i.e., how long you want to invest). As for its investment mix, Schwab can build more than 80 portfolio variations from the following:

• 51 ETFs that range across more than 20 expanded asset classes; Schwab professionals select and monitor these funds
• Three key investment strategies: Global, U.S.-focused, and Income Focused
• Six risk profiles; these include conservative, moderately conservative, moderate, moderate growth, aggressive, and aggressive growth.

Joint brokerage account options include joint tenants with rights of survivorship, tenants in common, and community property.

Retirement Accounts

Schwab Intelligent Portfolios offers the following retirement account options as an automated investing account.

• Traditional IRAs: An individual retirement account funded by pre-tax dollars, so you won't pay taxes until you withdraw. You can start withdrawing funds at 59 1/2 years old, or you'll be charged a 10% penalty fee on the amount withdrawn. 
• Roth IRAs: An individual retirement account funded by post-tax dollars, so the funds grow tax-free. You won't pay taxes when you withdraw at 59 1/2. But you can also be charged a 10% penalty fee if you withdraw too early. 
• SEP IRAs: A Simplified Employee Pension plan is a retirement savings account for self-employed individuals or small business owners. Funds are tax-deductible and you won't pay taxes on the funds until you withdraw.
• SIMPLE IRAs: Self-employed individuals or small businesses (100 employees or less) can open this retirement savings account for tax-deferred growth. 
• Rollover IRAs: Folks with a 401(k) from a previous employer can transfer funds into a Schwab Intelligent Portfolios IRA without penalties. 

Custodial Accounts

A parent or guardian can open an automated custodial savings account on behalf of a minor. Once the beneficiary reaches 18 or 21 years of age (depending on the state), they gain control of the account. 

Trust Accounts

Schwab Intelligent Portfolios offers a revocable living trust account for people who want to pass on their assets to a beneficiary after the original account owner has died. Folks can specify where their assets will go, and the number of trustees. If you want, you can make your beneficiary a trustee, which would allow them to manage the account.

Investment Options

You can only invest in ETFs with Schwab Intelligent Portfolios. The platform offers 51 different ETFs and over 20 asset classes. including:

• US stocks and international stocks
• US REITs and international REITs
• US and international high-dividend stocks
• US treasuries
• US corporate bonds
• Preferred securities
• Precious metals

Schwab Intelligent Portfolios Fees

To open Schwab Intelligent Portfolios you need a $5,000 minimum. This is higher than similar robo-advisors like Fidelity, but Schwab Intelligent doesn't charge an annual advisory fee. It also doesn't charge commission fees

Unlike Schwab Intelligent Portfolios, Schwab Intelligent Portfolios Premium has a $25,000 minimum, $300 one-time planning fee, and $30 monthly advisory fee.

Schwab Intelligent Portfolios — Frequently Asked Questions (FAQs)

Schwab Intelligent portfolios may be worth it if you are willing to pay the high minimum and are looking for an automated investment portfolio that gets you access to goal-planning features, multiple types of accounts, and tax-loss harvesting. 

Schwab Intelligent Portfolio has the following account options: individual and joint brokerage automated accounts, IRAs, custodial accounts, and trusts.

Yes. You can easily deposit or withdraw money at any time. Schwab Intelligent Portfolios uses a cash allocation in each portfolio, so users who withdraw less than that amount will typically receive withdrawal transfers overnight. If you're looking to withdraw an amount that exceeds the cash allocation in your portfolio, it may take four to six business days.

Schwab Intelligent Portfolios has a $5,000 minimum to open an account. But it doesn't charge an advisory fee. 

How Schwab Intelligent Portfolios Compares

Schwab Intelligent Portfolios vs. Fidelity

Schwab Intelligent Portfolios and Fidelity Investments both offer a vast range of self-directed and automated account options. Fidelity's robo-advisor, Fidelity Go, is the equivalent of Schwab Intelligent Portfolios. It has a $0 minimum requirement and Fidelity users with balances under $25,000 don't have to pay advisory fees.

Once you reach the $25,000 mark with Fidelity Go, you'll incur advisory fees (it charges 0.35% for accounts with balances of $25,000 or more). But you'll also get unlimited access to a one-on-one consultation with a Fidelity financial advisor. 

Fidelity Go review

Schwab Intelligent Portfolios vs. Betterment

Schwab Intelligent Portfolios and Betterment Investing both strictly offer automated investing, making them ideal for hands-off investors who want a self-managing portfolio. Both offer features like tax-loss harvesting and portfolio rebalancing, and each platform only uses ETFs.

You'll pay more in advisory fees at Betterment, but you'll need less to get started. Betterment's digital plan has a $0 minimum, whereas Schwab requires $5,000. 

Betterment review

Related Terms

• Robo-advisor: These automated investing accounts use computer algorithms and/or expert oversight to build personalized portfolios based off each investor's preferences (e.g., target returns, risk tolerance, and time horizon).
• Brokerage account: Available through investment platforms and broker-dealers, brokerage accounts let you invest in stocks, ETFs, options, and other assets.
• ETFs: These funds typically contain a mix of stocks, bonds, and commodities. They're generally less risky than stocks because they contain a blend of different investments, as opposed to just one security.
• Mutual funds: Like ETFs, mutual funds contain a blend of several investment types, but they're usually maintained by professional money managers.

Methodology: How We Reviewed Schwab Intelligent Portfolios

We examined Schwab Intelligent Portfolios using Personal Finance Insider's rating methodology for investing platforms to compare account options, fees, investment options, and customer experience when reviewing investing platforms. Platforms receive a rating between 0 and 5. 

Investment platforms usually offer multiple assets, trading tools, educational resources, and more. While some platforms are suitable for advanced investors or active investors, others may be better for beginners or passive investors. Schwab Intelligent Portfolios was rated based on how it performs compared to similar platforms.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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