Performance March 7, 2018

    The world of automated investing is growing—and shows no signs of slowing down.

    Barron's recently reported on a new study from Backend Benchmarking, which tracks the performance of robo-advisors. As of December 31 of last year, Backend has two full years of performance data for certain portfolios within several automated investment platforms, including Schwab Intelligent Portfolios®.

    Their calculations show that the portfolio they built using Schwab Intelligent Portfolios had the best performance among similar taxable portfolios, with a return of 27.7%. While it can be difficult to rank the performance of robo-advisors due to their customized nature, Backend aimed to create similar asset allocations at each firm, according to the article. All portfolios studied were based on a moderate risk tolerance level with an allocation of roughly 60% stocks and 40% bonds.

    Schwab Intelligent Portfolios is designed to provide broad diversification across stocks, bonds, commodities and cash, with up to 20 asset classes in any single portfolio. Additionally, automated rebalancing within Schwab Intelligent Portfolios accounts helps investors stay on track with their strategic asset allocation plans.

    And while performance is an important factor for investors to consider when choosing a robo-advisor, progress toward your long-term goals is perhaps even more crucial. That's why Schwab Intelligent Portfolios uses a unique algorithm to build a portfolio based on each individual's time horizon, risk tolerance and financial goals—free of advisory fees, commissions and account service fees.

    Read the full article from Barron's here.

    The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

    Data here is obtained from what are considered reliable sources; however, its accuracy, completeness or reliability cannot be guaranteed.

    Investing involves risk including loss of principal.

    Past performance is no guarantee of future results.

    Please read the Schwab Intelligent Portfolios disclosures brochures for important information, pricing, and disclosures relating to Schwab Intelligent Portfolios.

    Schwab Intelligent Portfolios® is made available through Charles Schwab & Co., Inc. (“Schwab”), a dually registered broker dealer and investment adviser. Portfolio management services are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). Free credit balances are swept into deposit accounts at Charles Schwab Bank (“Schwab Bank”). Brokerage products and accounts are offered by Schwab, Member SIPC. CSIA, Schwab Bank, and Schwab are affiliates and subsidiaries of The Charles Schwab Corporation.

    Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Schwab One brokerage account, are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.

    Accounts must maintain a minimum balance of $5,000 to be eligible for automatic rebalancing.

    Schwab Intelligent Portfolios is designed to monitor a client’s portfolio on a daily basis and will also automatically rebalance as needed to keep the portfolio consistent with the client’s selected risk profile unless such rebalancing may not be in the best interest of the client. Trading may not take place daily.

    Schwab Intelligent Portfolios charges no advisory fee. Schwab affiliates do earn revenue from the underlying assets in Schwab Intelligent Portfolios accounts. This revenue comes from providing advisory and other services for Schwab ETFs™ and providing services relating to certain third party ETFs that can be selected for the portfolio, and from the cash feature on the accounts. Revenue may also be received from the market centers where ETF trade orders are routed for execution.

    Diversification, automatic investing and rebalancing strategies do no ensure a profit and do not protect against losses in declining markets.


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