Schwab Clever Portfolios Evaluation 2021

Charles Schwab’s robo advisor providing Schwab Clever Portfolios combines the brokerage’s experience alongside expertise to construct portfolios for his or her buyers.

You may put your funding {dollars} to work by permitting the brokerage to construct a portfolio based mostly on a mixture of their 51 low-cost trade traded funds (ETFs).

What Is Schwab Clever Portfolios and How Does it Work?

After signing up for an Schwab Clever Portfolios account, you’ll reply a collection of questions designed to grasp your funding targets and persona equivalent to your threat tolerance and why you’re investing.

Primarily based on these solutions, Charles Schwab will construct you a diversified portfolio. Along with the number of ETFs supplied, Charles Schwab additionally provides portfolios for six threat profiles — from conservative to aggressive progress — and three completely different funding methods based mostly on the varieties of securities you wish to spend money on.

As well as, the ETFs are based mostly on components equivalent to how shut they’re to their focused index, expense ratios, and their publicity to broad asset lessons. Regardless that you don’t have to pay portfolio administration (or advisory) charges, there are ETF expense ratios — they’re nonetheless fairly low since they vary from 0.04% to 0.18%.

After you’ve created and funded your account with Schwab Clever Portfolios, the dealer will proceed to observe your portfolio and mechanically rebalance it at any time when your portfolio veers away out of your predetermined allocations. You may as well reap the benefits of their tax loss harvesting providers when you have got invested a minimum of $50,000.

The brokerage additionally provides one other providing known as Schwab Clever Portfolios Premium for an extra price. You’ll have to spend money on a minimal of $25,000 — options embrace limitless help from a Licensed Monetary Planner (CFP).

Schwab Clever Portfolios

Finest for Arms-Off Traders

Key Options

  • No administration price
  • Expense ratios starting from 0.04% to 0.18%
  • Premium account provides providers of CFP

After opening an account, Charles Schwab will monitor your portfolio and rebalance it as needed to keep up your goal allocation. Tax loss harvesting is obtainable in case you have invested a minimal of $50,000. The brokerage additionally provides premium providers, the place buyers can communicate to a Licensed Monetary Planner (CFP).

Schwab Clever Portfolios

Min. opening deposit




Accounts supplied

Normal brokerage accounts, IRAs, trusts, and UGMA/UTMA accounts



Noteworthy Options

Personalized Portfolio

Schwab, like different robo advisors, will create a personalized funding portfolio based mostly on solutions you give equivalent to your threat profile, monetary targets, and time horizon. You may as well customise their advisable allocations by eradicating as much as three ETFs and changing it with ones of your selecting. Plus, no matter your allocation is, Schwab will guarantee it purchases different ETFs based mostly on what it initially advisable to you.

Traders can open as many Clever Portfolios as they need so long as every account is funded with a minimal of $5,000. It could be a sensible transfer in the event you’re considering investing based mostly on completely different monetary targets and threat tolerance.

Schwab Clever Portfolios at a Look

Characteristic Particulars
Personalized portfolio Choose as much as three ETFs
Automated rebalancing Free for all accounts
Free tax loss harvesting Min. $50,000 stability
Schwab Clever Portfolios Premium One-on-one CFP recommendation
Portfolio combine 51 ETFs/10 fund households
Buyer assist On-line, reside, cellular

Account Varieties

Traders with Schwab Clever Portfolios can open all kinds of account varieties, together with:

  • Particular person taxable
  • Joint taxable
  • Conventional IRA
  • Roth IRA
  • Rollover IRA
  • Custodial accounts
  • Trusts

Schwab Clever Revenue

This characteristic tasks how a lot you’ll be capable to withdraw every month to assist fund your retirement or have your investments offer you revenue. Schwab can even contemplate how your withdrawals will have an effect on your taxes. You may select to arrange computerized withdrawals on a recurring foundation to be deposited into your account.

Schwab Clever Portfolios Premium

Traders who’ve a minimum of $25,000 can join Schwab’s premium model of their robo advisor providers. Known as Schwab Clever Portfolios Premium, you’ll obtain limitless one-on-one assist with a Licensed Monetary Planner, entry to on-line monetary planning instruments, and a written personalized monetary plan that will help you meet your monetary targets. Take note Schwab doesn’t mechanically pair you with a devoted advisor, however you possibly can request to work with the identical one.

The monetary plan you obtain is meant that will help you along with your monetary targets. You may ask the CFP for recommendation for planning round main life occasions equivalent to buying a house, saving for school, beginning a household, growing your revenue, budgeting ways, and even retirement methods.

To change into a premium consumer, you’ll have to pay an preliminary one-time monetary planning price of $300, then an ongoing price of $30 per 30 days (billed quarterly at $90).  Schwab is the one robo advisor to this point that fees an upfront price for related providers. Plus, whereas the flat-fee appears fairly low contemplating you’re getting personalised recommendation, it might price extra in comparison with different opponents relying in your funding stability.

Pricing and Charges

Schwab Clever Portfolios doesn’t change any administration charges on their finish, making it an inexpensive choice in comparison with different robo advisors. Nonetheless, there are expense ratios in your underlying investments, which vary from 0.04% to 0.18%. Schwab mentions that almost all ETFs it makes use of of their consumer portfolios are on the decrease finish of this vary.

Buyer Help

Clients can get 24/7 customer support with Schwab Clever Portfolios by calling 855-694-5208 or by way of life chat. The brokerage can also be accessible at any of their department areas and thru the Schwab cellular app, obtainable on each Android and iOS.

Professionals and Cons of Schwab Clever Portfolios

Right here is our roundup of the professionals and cons related to Schwab Clever Portfolios.


  • You received’t be charged any administration charges, until you decide into their Premium characteristic.
  • Whether or not you like in-person, telephone, or on-line service, you are able to do so with Schwab.
  • Sure, you’ll have to pay for this service, however working with a CFP by way of Schwab tends to be more economical than in the event you had been to pay for this service individually elsewhere.
  • Schwab mechanically rebalances accounts when needed to keep up goal allocation percentages.
  • Recommendation on tips on how to greatest withdraw your cash throughout retirement.


  • You’ll want a minimum of $5,000 to open an account. That is increased than many different opponents, which solely sometimes require just a few hundred {dollars}.
  • Clever Portfolios sometimes maintain wherever from 6% to 30% of your portfolio in money. Traders with the next threat tolerance could discover this a flip off.
  • Traders can solely get tax loss harvesting providers in the event that they make investments a minimal of $50,000.

Is Schwab Clever Portfolios Proper for You?

Schwab Clever Portfolios stands out as a result of it provides some nice providers for buyers who wish to make investments with robo advisors. The brokerage has a long-standing repute, there are not any administration charges, and portfolio choices have low-cost ETFs.

Nonetheless, the upper money allocation is probably not ultimate for extra aggressive buyers and we’re not too eager on the truth that tax loss harvesting is just for many who have invested a minimum of $50,000 with Charles Schwab.

The Schwab Clever Premium choice is fairly first rate, although it’s priced increased in comparison with different robo-advisors. Nonetheless, it’s cheaper than hiring your personal monetary planner, in order that’s one thing to think about. General, we predict Schwab Clever Portfolios is value a re-evaluation, particularly in case you have a good quantity to speculate.

Regularly Requested Questions (FAQs)

What Is Schwab Clever Portfolios?

Schwab Clever Portfolios is a robo-advisor that helps you allocate your portfolio based mostly on data you present, equivalent to your threat tolerance and monetary targets.

What Is a Robo Advisor?

A robo advisor makes use of expertise to handle investments and typically present monetary recommendation with out a lot human intervention. The purpose of a robo-advisor is in order that buyers are as hands-off as doable and sometimes at decrease prices. Learn more about robo advisors and the way they can assist you make investments.

What ETFs Are in Schwab Clever Portfolios?

Schwab Clever Portfolios has 51 ETFs throughout 20 completely different asset lessons and an FDIC-insured money account choice.  The brokerage outlines all of their investment options here, together with expense ratios and the explanations these belongings had been chosen.

Contributor Sarah Li-Cain is a private finance author based mostly in Jacksonville, Florida, specializing in actual property, insurance coverage, banking, loans and credit score. She is the host of the Buzzsprout and Past the Greenback podcasts.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button