StockBrokers.com blogged about the planned launch of Schwab’s Intelligent Portfolios last fall. Now, we wanted to take a closer look at Schwab Intelligent Portfolios since the launch occurred on March 9. If you’ve watched much television lately, you have probably seen a commercial on the Schwab Intelligent Portfolios. It’s clear that Charles Schwab has made a concerted effort to spread the word in a big way, and it’s hard to blame them. The company believes this technology will fundamentally change the landscape of the investing world. Below is “Hello”, the most commonly seen advertisement designed to introduce investors to this new service.
Schwab Intelligent Portfolios is a fully automated investment advisory service using sophisticated computer algorithms to build, monitor, and rebalance diversified portfolios based an investor’s stated goals, time horizon, and risk tolerance. There are no advisory fees, commissions, or account service fees.
This service does apply the insights of Charles Schwab’s Investment Advisory (CSIA) experts to algorithms to build and manage client portfolios of low cost ETFs with up to 20 asset classes, as well as an FDIC-insured cash allocation to manage risk and volatility. Investors simply answer a short set of questions that assess their goals and risk tolerance, and the portfolio is automatically rebalanced as the dynamics of the market change over time.
Naureen Hassan leads the team responsible for Schwab’s Intelligent Portfolios. She said, “We know there are three controllable variables that have an impact on the long-term success of investors-being and staying invested; having access to quality investment advice and money management; and keeping costs low.” Schwab believes that Schwab Intelligent Portfolios addresses all three of these.
There is loads of information of available at the Schwab Intelligent Portfolios website. The minimum investment required for this service is $5,000. To find out even more about Schwab Intelligent Portfolios, visit the Fact Sheet.
Schwab CEO Walt Bettinger said recently, “We launched Schwab Intelligent Portfolios™ on March 9th, continuing our tradition of innovation on behalf of investors. Intelligent Portfolios is the only fully automated investment advisory service using sophisticated computer algorithms to build, monitor, and rebalance diversified portfolios based on an investor’s stated goals, time horizon and risk tolerance without charging any advisory fees, commissions, or account service fees; 24/7/365 live professional assistance is included. Thus far, individual investor enrollments are running well ahead of our initial expectations, and we look forward to launching Institutional Intelligent Portfolios™ for our RIA clients in the second quarter of 2015.”