Schwab Service Helps With Portfolio Maintenance

Schwab says the new portfolio rebalancing approach uses “sophisticated computer algorithms to build, monitor, and rebalance diversified portfolios based on an investor’s stated goals, time horizon and risk tolerance.”

The service is delivered without charging any additional advisory fees, commissions or account services fees, Schwab says. Naureen Hassan, Schwab executive vice president, notes the service can be used for client portfolios starting at a minimum of $5,000.

“Schwab Intelligent Portfolios is an easy-to-use, low cost, and high-quality offering designed to get advice and money management to more people, whether they have $5,000 or $500,000,” she explains.  

Schwab Intelligent Portfolios applies the insights of Charles Schwab Investment Advisory (CSIA) experts to build and manage client portfolios comprised of exchange-traded funds (ETFs) with up to 20 asset classes, as well as an FDIC-insured cash allocations to manage volatility and risk. Investors with as little as $5,000 will receive a portfolio recommendation after answering a short set of questions that assess their goals and risk tolerance, and the portfolio is automatically rebalanced as market dynamics change.

Schwab Intelligent Portfolios will draw from 54 different ETFs and 27 asset classes to provide investors with personal portfolios featuring low-cost ETFs from Schwab and third-party providers including Vanguard, iShares and PowerShares. Funds are selected based on quantitative criteria such as size, bid-ask spread, tracking consistency, and operating expense ratio.

Other features include automated tax loss harvesting available for portfolios with $50,000 or more, along with account access via desktop computer or mobile device. Schwab says live telephone help is also available for clients.

Additional details about Schwab Intelligent Portfolios and easy sign-up are available at intelligent.schwab.com.