What does Schwab Intelligent Portfolio do?
Fees:
- Standard: $0 advisory fee
- Premium: $300 one-time setup + $30/month
- ETF expenses: 0.12% average
Account minimum:
- Standard: $5,000
- Premium: $25,000 total (min $5,000 per account)
Schwab Intelligent Portfolios is Charles Schwab’s robo-advisor service designed to automate the investing process for hands-off investors.
After answering a series of questions about your goals, risk tolerance, and timeline, the platform builds a diversified portfolio of low-cost ETFs across asset classes.
It automatically handles rebalancing, reinvestment, and tax-loss harvesting (for accounts over $50,000), all with no advisory fees.
For those seeking more personalized planning, Schwab also offers Intelligent Portfolios Premium, which adds unlimited access to Certified Financial Planners (CFPs) and a comprehensive financial plan for a flat monthly fee. This option blends automation with in-depth human guidance.
If you prefer traditional one-on-one financial advice, check out our Charles Schwab financial advisor review.
What are the pros and cons of Schwab Intelligent Portfolio?
As mentioned, Schwab Intelligent Portfolios offers a fully automated investing experience with no advisory fees. It also boasts strong features like tax-loss harvesting and portfolio rebalancing.
While it may be ideal for investors who want a hands-off approach backed by a reputable firm, the service does have some drawbacks that may not appeal to everyone, such as its high cash allocation and limited customization options.
To help give you the full picture before deciding whether to choose this service or not, here is a breakdown of the pros and cons:
Pros of Schwab Intelligent Portfolios:
- No portfolio management fee: Schwab charges no advisory or account management fees for its standard service.
- Wide ETF selection: Portfolios are built from a broad range of low-cost ETFs across up to 20 asset classes.
- Customizable portfolios: Investors can adjust risk tolerance and investment goals through an in-depth onboarding process.
- Automatic rebalancing: Portfolios are monitored and automatically rebalanced to stay on track.
- Optional premium upgrade: With Schwab Intelligent Portfolios Premium, you can add unlimited access to CFPs for a flat monthly fee.
Cons of Schwab Intelligent Portfolios:
- $5,000 account minimum: The minimum to start investing is higher than that of some competitors.
- Large cash allocation: Portfolios may hold 6%–30% in cash, which can limit growth potential.
- Tax-loss harvesting requires $50,000 minimum: This feature is only available for larger accounts.
- Limited fund customization: Users cannot swap out individual ETFs or exclude sectors.
Schwab Intelligent Portfolio fees: How much does Schwab Intelligent Portfolio cost?
Here is a breakdown of the costs associated with both Schwab Intelligent Portfolios Standard and Premium plans:
Schwab Intelligent Portfolios (Standard)
- Advisory fee: $0. Schwab does not charge a management or advisory fee.
- ETF operating expenses: Investors are responsible for the expense ratios of the underlying ETFs. This is typically averaging around 0.12% annually.
- Other costs: There are no commissions or account maintenance fees. However, the portfolios include a cash sweep that earns lower interest. Schwab Bank earns revenue on the deposits.
For the standard tier, clients pay zero management fees but still cover small ETF expense ratios. The trade-off is that a portion of assets sits in low‑yield cash, which indirectly benefits Schwab Bank.
Schwab Intelligent Portfolios (Premium)
- One-time planning fee: $300, charged when you meet with a CFP for the first time.
- Ongoing advisory fee: $30/month (charged quarterly, $90 every three months) to maintain access to unlimited CFP guidance, a personalized financial plan, and planning tools.
- Account minimums: $25,000 total at program level, with at least $5,000 per account. Falling below the threshold may result in unenrollment and loss of planning access.
- ETF expenses: Same as standard tier, clients still pay underlying fund fees.
Premium combines automated investing with human advice at a flat rate, making it cost-competitive for larger portfolios.
Schwab Intelligent Portfolios Standard vs Schwab Intelligent Portfolios Premium
| Feature | Standard tier | Premium tier |
|---|---|---|
| Management/advisory fee | $0 | $300 initial + $30/month ($90 quarterly) |
| Account minimum | $5,000 | $25,000 program-wide ($5,000 min per account) |
| ETF expense ratios | Average 0.12% | Average 0.12% |
| Tax-loss harvesting eligibility | Requires $50,000+ in account | Requires $50,000+ in account |
| Human advisor access | ❌ None | ✅ Unlimited CFP access |
What is Schwab Intelligent Portfolio’s minimum account size?
To get started with Schwab Intelligent Portfolios, investors must meet certain minimum balance requirements depending on the service tier they choose:
- Standard service: $5,000 minimum per account
- Premium service: $25,000 minimum total across all Schwab Intelligent Portfolios Premium accounts
- Per-account requirement (Premium): Each account must still meet the $5,000 minimum
Dropping below the $25,000 minimum for premium accounts may lead to removal from the premium plan and loss of access to financial planning tools and advisors.
Who should choose Schwab Intelligent Portfolio?
Schwab Intelligent Portfolios is a strong choice for cost-conscious, hands-off investors who want automated management with the backing of a well-known financial institution.
It may be especially appealing for:
- Investors near retirement: The higher-than-average cash allocation can help reduce portfolio volatility and provide liquidity for withdrawals.
- IRA and tax-advantaged account holders: The platform is well-suited for IRAs, where the impact of cash drag and tax efficiency is minimized.
- Investors seeking free portfolio management: Schwab charges no advisory or management fees for its standard service.
- Existing Schwab clients: Easy integration with other Schwab accounts, such as brokerage or 401(k), makes account management more seamless.
- Hands-off investors: Ideal for those who want an automated, diversified ETF portfolio with automatic rebalancing and optional financial planning.
The Schwab service is best suited for individuals who prefer a passive strategy and don’t require frequent human interaction or customized investment advice.
If you’re still comparing platforms, check out our guide to the best robo-advisors to see how Schwab stacks up against others.
Schwab Intelligent Portfolio: Is it secure?
Yes, Schwab Intelligent Portfolios is considered secure and operates under strict regulatory oversight.
Accounts are held at Charles Schwab & Co., Inc., a Securities Investor Protection Corporation (SIPC) member, offering protection up to $500,000 for securities and $250,000 for cash.
Additionally, uninvested cash is swept into FDIC-insured deposit accounts at Schwab Bank, up to applicable limits.
On the digital side, Schwab uses strong encryption, two-factor authentication, and continuous account monitoring to safeguard user data and prevent unauthorized access.
These security measures meet industry standards for protecting both assets and personal information.
Schwab Intelligent Portfolio: Customer service
Schwab provides strong customer support for its robo-advisor platform, including:
- 24/7 support via phone and live chat
- Dedicated phone line for Intelligent Portfolios inquiries
- In-person assistance at 300+ Schwab branch locations
Schwab is a trusted brand within the sector, with high customer satisfaction ratings across the industry.
Schwab Intelligent Portfolio reviews: What real customers are saying?
User Insights
Many Reddit users appreciate the premium tier for accounts over $25,000, especially the access to flat-fee financial planning. The platform is often described as easy to use and convenient for hands-off investors.
That said, a common concern is the relatively high cash allocation, which some feel may limit long-term returns.
Several users also noted that their portfolios underperformed compared to simple index-based strategies like the S&P 500.
One user wrote: “Annualized growth was way below inflation… value of holdings at the end was less than what I started with.”
Trustpilot & BBB Reviews (Company-wide)
On Trustpilot, Schwab has a low average rating (1.6/5), with repeated complaints about account issues and poor responsiveness.
Schwab is not accredited with the Better Business Bureau (BBB), a private nonprofit organization that operates a business directory and rating system.
The BBB references a 2022 SEC settlement regarding misleading cash allocation disclosures in the robo-advisor product.
Schwab Intelligent Portfolio: Mobile app
Schwab Intelligent Portfolios doesn’t have its own app, but you can fully manage your account through the Schwab Mobile app.
It supports onboarding, portfolio tracking, deposits, and rebalancing.
While functional, the app is more traditional and less sleek compared to robo-first platforms like Betterment or Wealthfront.
Is Schwab Intelligent Portfolio worth it?
Schwab Intelligent Portfolios is a strong option for hands-off investors seeking automated portfolio management with no advisory fees.
Backed by a reputable brand, it offers a broad range of financial planning tools.
However, for those who want to be more hands-on with their planning, this may not be the right tool for them.