A Personal Look At Schwab’s Robo Advisor

April 29, 2015

[Editor's Note: An earlier version of this story had errors in the second chart. A corrected version of the chart is below. We regret the errors.]

A few weeks ago, Schwab launched its version of a robo advisor product branded as the Schwab Intelligent Portfolio. Unlike other robo advisors, such as Wealthfront and Betterment, Schwab charges no management fee.

I wanted to see what the portfolio of ETFs and cash would look like, but the only way I could figure it out for certain was to open an account and buy it. So I did just that with the minimum $5,000 investment. To minimize the significant amounts of cash earning virtually nothing, I did my best to choose the most aggressive portfolio I could for this small amount of money. However, Schwab spokesperson Michael Cianfrocca told me I had not chosen the most aggressive portfolio.

I'll reveal my specific portfolio in a bit, but here are some basic stats using a Morningstar tool to analyze. Also important to note is that the allocation below is as of a few weeks after the purchase, so the allocations may have slightly drifted. Finally, keep in mind that this is only one of the Schwab portfolios.

The portfolio had the following broad allocations. The 8 percent cash includes a bit of cash held by some of the underlying ETFs, so the pure cash was only about 7 percent.

As expected, the fundamental index funds used resulted in a heavy tilt toward small and midcap stocks and toward value.

Other interesting characteristics of the portfolio include:

Find your next ETF

Reset All