Schwab Intelligent Portfolios Review (2026)
Schwab Intelligent Portfolios is an automated ETF portfolio for investors with at least $5,000 who would rather give up some return on cash than pay an advisory fee. The one thing to know: there is no advisory fee, but 6% to 30% of every account is held in cash at Charles Schwab Bank, and Schwab says in its own brochure that the program "is not free of charge". That cash earned 3.47% APY from October 1, 2026, and fund expenses run 0.02% to 0.15% a year at the portfolio level.
By Wealthy Pot Editorial · Facts checked October 19, 2026
Facts checked October 19, 2026 against Schwab Intelligent Portfolios's own Form ADV brochures, fee pages and fund documents (8 sources, listed below). We re-check prices about once a month. We do not earn a commission from Charles Schwab.
Schwab Intelligent Portfolios at a glance
| Advisory fee | $0 program or advisory fee and no commissions; the brochure says the program "is not free of charge" because of the cash allocation [1] |
|---|---|
| Minimum | $5,000 in each account [1] |
| Cash allocation | Generally 6% to 30% of each account, set by risk profile, held as FDIC-insured deposits at Charles Schwab Bank, SSB [1] |
| Cash rate | 3.47% APY effective October 1, 2026; reset monthly to the 7-day yield (with waivers) of the Schwab Government Money Fund (SWGXX) [4] |
| Who earns on the cash | Schwab Bank keeps the spread between what it earns on the deposits and what it pays you; it earns more when the cash allocation is above 10% [1] |
| Fund costs | Weighted average ETF expense ratios of 0.02% to 0.15% a year per portfolio, as Schwab states them [3] |
| Primary ETFs | Mostly Schwab ETFs, such as SCHX and SCHF at 0.03% and FNDX at 0.25% a year [5] |
| Tax-loss harvesting | Opt-in, taxable accounts, $50,000 in a single account to activate; no extra fee; daily scan [1] |
| Human advice | None for new clients; 24/7 live phone and chat service from US-based staff (service, not planning advice) [2] |
| Premium tier | Its page has redirected to the main page since about March 2026 and the October 2026 brochure does not describe it; new clients should not expect it [6] |
| Account types | Individual, joint, tenants in common, community property, custodial, revocable living trust; Traditional, Roth, Rollover, Inherited, SEP and SIMPLE IRA [2] |
| Rebalancing | Algorithms review accounts daily and rebalance to the risk profile; Schwab Asset Management reviews trades before release [1] |
| Trading and margin | You cannot place your own trades; accounts are not margin accounts [1] |
| Custody and SIPC | Charles Schwab & Co., Inc. is the custodian, a member of FINRA and SIPC; the cash allocation is a bank deposit covered by FDIC rules, not SIPC [1] |
| Company | Charles Schwab & Co., Inc. (CRD 5393, SEC 801-29938), owned by The Charles Schwab Corporation (NYSE: SCHW); portfolios run by Schwab Asset Management (CRD 106753); brochure dated October 15, 2026 [1] |
What a year with Schwab Intelligent Portfolios costs
| Balance | Advisory fee | Fund expenses | Total a year | As % of balance |
|---|---|---|---|---|
| $5,000 | $0 | $1 to $7.50 | $1 to $7.50 | 0.02% to 0.15% |
| $25,000 | $0 | $5 to $37.50 | $5 to $37.50 | 0.02% to 0.15% |
| $100,000 | $0 | $20 to $150 | $20 to $150 | 0.02% to 0.15% |
Hypothetical, our arithmetic from Schwab Intelligent Portfolios's published fee rules and 0.02% to 0.15% a year in fund expenses, as Charles Schwab states them, read on October 19, 2026, assuming the balance stays the same all year. Schwab charges no advisory fee but holds 6% to 30% of the account in cash at Schwab Bank, paying 3.47% APY from October 1, 2026; Schwab says it earns more when the cash allocation is above 10%. The fund range is the weighted ETF expense ratio Schwab states for its portfolios.
How Schwab Intelligent Portfolios works
You choose a goal and answer risk questions, and Schwab builds a portfolio of ETFs from a fixed list, with a primary and a secondary ETF for each asset class. Schwab Asset Management, an affiliate, manages it. Most primary ETFs are Schwab funds, such as the Schwab U.S. Large-Cap ETF (SCHX) and Schwab International Equity ETF (SCHF), at 0.03% each; the Schwab Fundamental U.S. Large Company ETF (FNDX) costs 0.25%. The secondary list, as of May 31, 2026, includes Vanguard, iShares, Invesco, SPDR and Xtrackers ETFs, used mainly for tax-loss harvesting. You can ask to exclude certain ETFs, but Schwab does not honor restrictions on stocks, mutual funds or the cash.
Schwab charges no advisory fee "in part because of the revenue Schwab Bank generates" from the cash allocation, in the brochure's words. Between 6% and 30% of the account sits in a bank deposit at Charles Schwab Bank, SSB. You earn interest on it, 3.47% APY from October 1, 2026, and Schwab Bank earns the difference between that and what it makes lending or investing the money. The higher the cash share and the lower the rate paid, the more Schwab Bank earns. For retirement accounts, IRS rules lead Schwab to make a nominal 0.30% fee calculation that is fully offset by fund revenue its affiliates receive, so the net program fee is still $0.
The cost shows up when the invested part beats cash. A hypothetical $50,000 account with 10% in cash holds $5,000 in the bank deposit, which earns $5,000 x 3.47% = $173.50 a year. For every percentage point that the other $45,000 out-earns cash, the cash share costs $50 a year, or 0.10% of the account. At a 30% cash allocation, $15,000 sits in cash and each point costs $150, or 0.30%. For comparison, a 0.25% advisory fee on $50,000 is $125. In years when cash out-earns stocks and bonds, the cash share helps instead. The cost block below shows the advisory fee and fund expenses only.
Tax-loss harvesting means selling an ETF at a loss and buying a similar one to offset gains elsewhere. Here it is opt-in, for taxable accounts only, and switches on once a single account holds $50,000; it carries no extra fee and never guarantees tax savings. Schwab may hold off on rebalancing toward targets for 30 days or more to avoid a wash sale, and you must watch your other accounts for wash sales yourself. For the Schwab brokerage account and its fees, see our Schwab review.
Pros
- $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
Cons
- 6% to 30% of the account is held in cash, which lowers returns when stocks and bonds out-earn cash
- Schwab Bank keeps the spread on that cash
- $5,000 minimum per account, against $0 to open at Fidelity Go and $100 at Vanguard Digital Advisor
- Tax-loss harvesting needs $50,000 in one account
- No human planning for new clients since Premium left Schwab's site
Who Schwab Intelligent Portfolios fits, and who should skip it
A good fit 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.
Look elsewhere if
- You have less than $5,000: Fidelity Go starts investing at $10 with no advisory fee under $25,000.
- You want nearly all of your money invested: Vanguard Digital Advisor discloses no required cash share and charges 0.20% gross on index portfolios.
- You want tax-loss harvesting on a taxable account under $50,000: Wealthfront states no minimum balance for it.
- You want a planner: Premium is no longer offered on Schwab's site; Betterment Premium gives CFP access from $100,000 at 0.65%.
Limitations to know
- You cannot trade in the account or use it for margin. [1]
- Restrictions are limited to excluding certain ETFs; you cannot exclude stocks, mutual funds or the cash. [1]
- Tax-loss harvesting stays active above a lower balance that Schwab does not state, and wash-sale avoidance can pause rebalancing for 30 days or more. [1]
- Schwab pays USAA Investment Services 0.15% a year of the assets in accounts it refers, a conflict the brochure discloses. [1]
- Schwab Intelligent Portfolios Premium: schwab.com/intelligent-portfolios-premium has redirected to the main page since about March 2026, and the October 2026 brochure does not describe it. Schwab's third-quarter 2026 earnings release still names Premium among its advisory products, which may cover existing accounts; we found no Schwab notice about it. New clients should not expect it. [7]
Schwab Intelligent Portfolios compared with alternatives
| Robo | Advisory fee | Minimum | Tax-loss harvesting | Year cost on $25,000 |
|---|---|---|---|---|
| Schwab Intelligent Portfolios | $0 advisory fee; 6% to 30% held in cash at Schwab Bank | $5,000 | Yes | $5 to $37.50 |
| Fidelity Go | $0 under $25k, then 0.35%/yr on the whole balance | $0 ($10 to start investing) | Yes | $87.50 |
| Vanguard Digital Advisor | 0.20%/yr index or 0.25% active (gross; less after fund credits); first 90 days free | $100 | Yes | $57.50 to $67.50 |
| Wealthfront | 0.25%/yr (Bond Ladder 0.15%, S&P 500 Direct 0.09%) | $500 | Yes | $62.50 + funds |
| Betterment | $5/mo under $24k (unless $200+/mo deposits), else 0.25%/yr; Premium 0.65% | $0 ($10 first deposit) | Yes | $75 to $95 |
- Pick Fidelity Go if you have less than $5,000, since it starts investing at $10 and charges no advisory fee under $25,000.
- Pick Vanguard Digital Advisor if you want Vanguard index ETFs from $100 at no more than $20 per $10,000 a year net.
- Pick Wealthfront if you want tax-loss harvesting with no minimum balance at 0.25% a year.
- Pick Betterment if you want CFP access, available on Betterment Premium from $100,000 at 0.65% a year.
Security and privacy
- Charles Schwab & Co., Inc. holds the ETFs as custodian and is a member of FINRA and SIPC. The cash allocation is a deposit at Charles Schwab Bank, SSB, covered by FDIC insurance subject to its limits, not by SIPC. [1]
- In June 2022 three Schwab investment adviser subsidiaries settled SEC charges that disclosures for this program from 2015 to 2018 hid the drag the cash allocation put on returns. They paid $187 million to harmed clients and agreed to hire an independent consultant. The adviser today is Charles Schwab & Co., Inc. [8]
- The current brochure, dated October 15, 2026, discloses the cash allocation, who earns on it, and the conflicts that follow from it. [1]
- We did not read Schwab's security guarantee or two-factor pages for this review, so those details are not listed here. [2]
Recent changes
| Date | What changed |
|---|---|
| Oct 15, 2026 | New brochure: revised disclosures on wash-sale avoidance and on compensation from third-party ETF sponsors. [1] |
| Mar 2026 | The Schwab Intelligent Portfolios Premium page began redirecting to the main page (Internet Archive shows the redirect on March 22, 2026). [6] |
| Jun 1, 2022 | Interest on the cash allocation set monthly from the 7-day yield of the Schwab Government Money Fund (SWGXX). [1] |
Schwab Intelligent Portfolios FAQ
How much does Schwab Intelligent Portfolios cost?
There is no advisory fee and no commissions. You pay fund expenses, which Schwab puts at 0.02% to 0.15% a year at the portfolio level, and an indirect cost: 6% to 30% of the account is held in cash at Schwab Bank, paying 3.47% APY from October 1, 2026, while Schwab Bank keeps the spread.
Is Schwab Intelligent Portfolios safe?
Charles Schwab & Co., Inc. holds the ETFs and is a SIPC member; the cash allocation is an FDIC-insured deposit at Charles Schwab Bank, SSB, subject to FDIC limits. Neither protects against market losses. In 2022 Schwab subsidiaries paid $187 million to settle SEC charges over past disclosures about this cash allocation.
Does Schwab Intelligent Portfolios do tax-loss harvesting?
Yes, if you opt in, in taxable accounts with $50,000 in a single account to start. There is no extra fee. Schwab does not promise tax savings, and you have to watch your other accounts for wash sales.
What is the minimum for Schwab Intelligent Portfolios?
$5,000 in each account.
Schwab Intelligent Portfolios vs Fidelity Go?
Schwab needs $5,000 and charges no advisory fee at any balance, but holds 6% to 30% in cash. <a href="/robo-advisors/fidelity-go/">Fidelity Go</a> starts at $10, charges nothing under $25,000 and 0.35% on the whole balance from $25,000, and holds Flex funds that are sold if you leave Fidelity. Schwab harvests losses from $50,000, Fidelity Go from $25,000.
Is Schwab Intelligent Portfolios worth it?
It depends on the cash share. Hypothetically, on $50,000 with 10% in cash, each percentage point that stocks and bonds beat cash costs $50 a year, so a 2.5 point gap matches a 0.25% fee ($125). At 30% cash, each point costs $150. Compare robos in our <a href="/robo-advisors/">robo-advisor comparison</a>.
How we researched this review
We did not get paid or receive a free account for this page. We read Schwab Intelligent Portfolios's own pricing page, help center, security and privacy pages and app-store listing on October 19, 2026, quoted each fact from those pages, and link every one below. We did not run a long-term hands-on test, so we do not score the app; where a point rests on what the company says rather than something we can check, we attribute it to Schwab Intelligent Portfolios. Cost figures are our own arithmetic. We re-check prices and plans about once a month and log changes in the table above.
Sources
- Charles Schwab & Co., Inc., Schwab Intelligent Portfolios wrap fee program brochure, Form ADV Part 2A (October 15, 2026), checked October 19, 2026.
- Schwab, Schwab Intelligent Portfolios overview and pricing, checked October 19, 2026.
- Schwab, How we select ETFs for Schwab Intelligent Portfolios, checked October 19, 2026.
- Schwab, Schwab Intelligent Portfolios sweep program current interest rate, checked October 19, 2026.
- SEC EDGAR, Schwab ETFs advisory fee schedule exhibit (March 2026), checked October 19, 2026.
- Internet Archive, schwab.com/intelligent-portfolios-premium captured March 22, 2026 (redirects to the main page), checked October 19, 2026.
- The Charles Schwab Corporation, third quarter 2026 earnings release (Form 8-K exhibit 99.1), checked October 19, 2026.
- SEC, Schwab subsidiaries misled robo-adviser clients about cash allocation (press release 2022-104), checked October 19, 2026.
Head-to-head comparisons
- Schwab Intelligent Portfolios vs Wealthfront
- Schwab Intelligent Portfolios vs Vanguard Digital Advisor
This review is general information, not investment advice. Investing involves risk, including loss of principal; past performance does not predict future results. Fees change; check the firm's Form ADV brochure and pricing page before you enroll.