Schwab Intelligent Portfolios vs Vanguard Digital Advisor (2026)
Schwab Intelligent Portfolios charges no advisory fee but needs $5,000 and holds 6% to 30% in cash at Schwab Bank. Vanguard Digital Advisor charges about 0.16% net on its standard index portfolio from $100, with no required cash allocation disclosed. Which costs less depends on your cash share and on how far stocks and bonds out-earn cash.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Schwab Intelligent Portfolios | Vanguard Digital Advisor |
|---|---|---|
| Type | Broker-owned | Broker-owned |
| Advisory fee | $0 advisory fee; 6% to 30% held in cash at Schwab Bank | 0.20%/yr index or 0.25% active (gross; less after fund credits); first 90 days free |
| Year cost on $5,000 | $1 to $7.50 | $11.50 to $13.50 |
| Year cost on $25,000 | $5 to $37.50 | $57.50 to $67.50 |
| Year cost on $100,000 | $20 to $150 | $230 to $270 |
| Account minimum | $5,000 | $100 |
| Tax-loss harvesting | Yes | Yes |
| Platforms | Web, iOS, Android | Web |
| Best for | Schwab clients with $5,000+ who accept a cash allocation in place of an advisory fee | Investors who want Vanguard index ETFs managed for about 0.20% a year, starting at $100 |
Year-cost rows are our arithmetic: advisory fee plus typical fund expenses, balance held flat for a year, using each firm's published fee rules. Hypothetical, not a quote.
Key differences
Schwab replaces the advisory fee with cash: 6% to 30% of each account sits at Charles Schwab Bank, paying 3.47% APY from October 1, 2026, and Schwab Bank keeps the spread. Vanguard charges a fee instead, 0.20% gross on index portfolios, which a credit of Vanguard fund revenue brings to about 0.16% net on the standard index portfolio, or no more than $20 per $10,000, Vanguard says. The Digital Advisor brochure discloses no required cash allocation. The table uses Vanguard's 0.20% gross figure, so it shows a ceiling, not the net.
A hypothetical $50,000 index portfolio shows the trade. At Vanguard, the net fee at about 0.16% is $50,000 x 0.16% = $80 a year. At Schwab, with 10% in cash, $5,000 sits in the bank deposit, and each percentage point by which stocks and bonds out-earn cash costs $50 a year (1% of the $5,000 held in cash), so a 1.6 point gap equals Vanguard's $80. At 30% cash, each point costs $150. New Vanguard clients pay no net advisory fee for the first 90 days, and Vanguard can raise the gross fee on 30 days' written notice.
Vanguard starts at $100 per account; Schwab needs $5,000. Vanguard's tax-loss harvesting is optional for taxable individual, joint and eligible revocable trust accounts with no stated threshold, but you must use the MinTax cost basis method; Schwab's is opt-in from $50,000 in one taxable account. Schwab takes custodial accounts and SIMPLE IRAs, which the Vanguard brochure does not list. Neither includes a human planner: Schwab has 24/7 phone and chat service, Vanguard a beta AI chat assistant, with human advice in Vanguard Personal Advisor at 0.35% gross and a $50,000 minimum.
Where Schwab Intelligent Portfolios wins
- $0 advisory fee and no commissions at any balance
- Portfolio-level fund expenses of 0.02% to 0.15% a year
- The cash share earns interest, 3.47% APY from October 1, 2026
- Custodial, revocable trust, Inherited, SEP and SIMPLE IRA accounts are eligible
- Tax-loss harvesting at no added fee from $50,000
- 24/7 live phone and chat service
Where Vanguard Digital Advisor wins
- Net fee of no more than $20 per $10,000 a year on index portfolios
- Core ETFs at 0.03% to 0.07% a year
- $100 minimum per account, $5 for eligible 401(k) accounts
- No net advisory fee for the first 90 days
- Tax-loss harvesting with no stated balance threshold, included in the fee
- No required cash allocation disclosed
Which should you choose?
Pick Schwab Intelligent Portfolios if
- You have $5,000 or more and prefer a cash allocation that earns interest over an advisory fee.
- You want a managed custodial account, revocable trust, Inherited IRA or SIMPLE IRA.
- You have $50,000 or more in a taxable account and want tax-loss harvesting at no extra charge.
- You want live phone and chat service around the clock.
Pick Vanguard Digital Advisor if
- You want a managed portfolio of Vanguard index ETFs from $100.
- You want tax-loss harvesting with no balance threshold stated, included in the fee.
- You want a revocable trust or inherited IRA managed.
- You do not need to talk to an advisor.
Schwab Intelligent Portfolios vs Vanguard Digital Advisor: FAQ
Which costs less on $25,000, Schwab or Vanguard?
Schwab charges no advisory fee, and its funds cost $25,000 x 0.02% to 0.15% = $5 to $37.50 a year, but 6% to 30% of the account is held in cash. Vanguard charges 0.20% gross, $50, or about $40 net at 0.16%, plus $7.50 to $17.50 for its core ETFs. Hypothetically, with 10% of $25,000 in cash at Schwab, each point that stocks and bonds beat cash costs $25 a year.
Which does tax-loss harvesting?
Both, in taxable accounts. Vanguard Digital Advisor includes it in the fee for taxable individual, joint and eligible revocable trust accounts with no balance threshold stated, and requires the MinTax cost basis method. Schwab Intelligent Portfolios offers it if you opt in with $50,000 in a single taxable account. Neither promises tax savings.
Have regulators acted against either firm?
In June 2022 three Schwab adviser subsidiaries paid $187 million to settle SEC charges that disclosures for this program from 2015 to 2018 hid the drag of the cash allocation. In August 2025 the SEC ordered Vanguard Advisers to pay a $19.5 million penalty over conflicts in Vanguard Personal Advisor, not Digital Advisor.
Compare these against every option in our robo-advisors comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both services, each checked against the firm's own fee pages and SEC filings on October 19, 2026 with every source listed. We do not earn a commission from either service. Nothing here is investment advice.