Build Schwab’s Managed Portfolios With ETFs

What are the Schwab Managed Portfolios?

Schwab Managed Portfolios can be built with 7-11 ETFs. They are exposed to between 40% and 100% equities.

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What is the historical return of Charles Schwab managed portfolios?

Below you can see the historical return for Scwabs’s managed portfolios

Portfolio data was last updated on 11th of November 2022, 11:40 ET

NameYear to dateReturn in 202110 year returnCAGR since 1989 (%)STDEVDraw DownExpense ratioYield
Schwab Managed Portfolio, Conservative Income-11.22.372.955.544.07-1.95%0.10%1.71
Schwab Managed Portfolio, Income With Growth-13.246.384.956.395.15-8.25%0.09%1.86
Schwab Managed Portfolio, Balanced-14.3210.796.377.277.83-17.18%0.11%2.03
Schwab Managed Portfolio, Balanced With Growth-16.3914.748.158.0910.53-25.01%0.11%2.12
Schwab Managed Portfolio, Growth-17.2718.219.668.5813.2-32.39%0.11%2.15
Schwab Managed Portfolio, Aggressive Growth-18.6620.3811.088.9815.58-38.07%0.09%2.19
Performance for Schwab Managed Portfolios

Here is what the table is showing you

Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.

10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.

CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.

Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.

Yield: This is the expected dividend yield of the portfolio.

Please note that past performance is not a guarantee of future returns.

How does Schwab’s Managed portfolios compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202110 year returnCAGR since 1989 (%)Draw Down
Premium PortfolioPremium-20.9732.1413.211.81-35.43%
Premium PortfolioPremium-18.728.7816.5211.28-37.63%
Premium PortfolioPremium-19.6425.6716.2911.25-37.00%
Premium PortfolioPremium-23.9913.4911.0311.21-44.87%
Premium PortfolioPremium-12.028.1714.4711.14-35.26%
Premium PortfolioPremium-14.924.7511.8510.99-36.46%
Premium PortfolioPremium-14.7929.0213.1510.99-40.85%
Premium PortfolioPremium-20.620.711.4510.93-37.91%
Premium PortfolioPremium-15.1224.5111.8710.88-36.35%
Premium PortfolioPremium-19.3822.9214.9910.85-32.77%
The 10 Best Performing Portfolios That We Have Benchmarked

How do you build Charles Schwab managed portfolios with ETFs?

This is for Schwab Managed Portfolio, Aggressive Growth. You can find many more further below.

  • 33.00% US Large Cap (VV)
  • 13.00% US Small Cap (VIOO)
  • 5.00% REITs (VNQ)
  • 31.00% International Developed Blend (VEA)
  • 9.00% Emerging Markets (VWO)
  • 5.00% Cash (money market fund) (BIL)
  • 4.00% Commodities (DBC)

Make sure you select the right ETFs!

There are a lot of ETFs! It is pretty boring to sift through hundreds and hundreds of ETFs just to find the right one, but it is worth it!

Finding the right and BEST ETF could earn you a lot more money than number two on the list.

We have done the work for you – all for FREE.

We have carefully selected ETFs for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?

If you are a European investor you need to buy European ETFs (they need to be of the UCITS kind!).

We have listed 47 of the best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).

As of 2021 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social, and corporate governance issues.

You can find the socially responsible investing ESG ETFs in the same article.

Who is Charles Schwab?

Charles Schwab founded his business in 1971 and is now one of the largest banks with a brokerage and an ETF business. Schwab brokerage offers to manage your portfolios according to your risk level using several portfolios. Schwab also offers one-fund target-date retirement funds.

Charles Schwab: How One Company Beat Wall Street and Reinvented the Brokerage Industry

Schwab also has its own robo advisor called intelligent portfolios.

Description of Charles Schwab managed portfolios

The Charles Schwab managed portfolios are a collection of portfolios managed by Charles Schwab using Schwab funds. As usual, they employ a ladder of portfolios to cater to every risk level. This video explains how they manage risk. One thing stood out from viewing that video:

“And, we build that asset allocation for today’s world; not the markets of the 90’s or early 2000’s.” – Jim Peterson, Cheif Investment Officer, Charles Schwab

From an investing perspective, there is no difference in investing 50 years ago and today. The only thing that has changed is the amount of information and the investment vehicles you use. Portfolioeinstinein.com is proof enough that you don’t invest in a particular market or a particular time. It does not help your returns, on the contrary. See the article Meet Susan: The Most Important Question In Investing.

Charles Schwab’s breakdown of which asset classes they use in their managed portfolios. Source: charlesschwab.com

What is the asset allocation for Charles Schwab managed portfolios?

Schwab Managed Portfolio, Aggressive Growth

  • 33.00% US Large Cap (VV)
  • 13.00% US Small Cap (VIOO)
  • 5.00% REITs (VNQ)
  • 31.00% International Developed Blend (VEA)
  • 9.00% Emerging Markets (VWO)
  • 5.00% Cash (money market fund) (BIL)
  • 4.00% Commodities (DBC)

Schwab Managed Portfolio, Balanced With Growth

  • 22.00%US Large Cap (VV)
  • 7.00%US Small Cap (VIOO)
  • 5.00%REITs (VNQ)
  • 20.00%International Developed Blend (VEA)
  • 5.00%Emerging Markets (VWO)
  • 26.00%Total US Bond Market (BND)
  • 5.00%Cash (money market fund) (BIL)
  • 6.00%Commodities (DBC / GSG)
  • 1.00%High Yield Corporate Bonds (HYG / JNK)
  • 2.00%TIPS (VTIP)
  • 1.00%Non-US Bonds (BNDX)

Schwab Managed Portfolio, Growth

  • 29.00%US Large Cap (VV)
  • 9.00%US Small Cap (VIOO)
  • 5.00%REITs (VNQ)
  • 26.00%International Developed Blend (VEA)
  • 7.00%Emerging Markets (VWO)
  • 12.00%Total US Bond Market (BND)
  • 5.00%Cash (money market fund) (BIL)
  • 6.00%Commodities (DBC / GSG)
  • 1.00%TIPS (VTIP)

Schwab Managed Portfolio, Balanced

  • 15.00%US Large Cap (VV)
  • 5.00%US Small Cap (VIOO)
  • 5.00%REITs (VNQ)
  • 13.00%International Developed Blend (VEA)
  • 4.00%Emerging Markets (VWO)
  • 33.00%Total US Bond Market (BND)
  • 15.00%Cash (money market fund) (BIL)
  • 5.00%Commodities (DBC / GSG)
  • 1.00%High Yield Corporate Bonds (HYG / JNK)
  • 2.00%TIPS (VTIP)
  • 2.00%Non-US Bonds (BNDX)

Schwab Managed Portfolio, Income with Growth

  • 9.00%US Large Cap (VV)
  • 2.00%US Small Cap (VIOO)
  • 5.00%REITs (VNQ)
  • 8.00%International Developed Blend (VEA)
  • 37.00%Total US Bond Market (BND)
  • 20.00%Cash (money market fund) (BIL)
  • 1.00%Commodities (DBC / GSG)
  • 4.00%High Yield Corporate Bonds (HYG / JNK)
  • 10.00%TIPS (VTIP)
  • 4.00%Non-US Bonds (BNDX)

Schwab Managed Portfolio, Conservative Income

  • 5.00% REITs (VNQ)
  • 40.00% Total US Bond Market (BND)
  • 25.00% Cash (money market fund) (BIL)
  • 7.00% High Yield Corporate Bonds (HYG / JNK)
  • 18.00% TIPS (VTIP)
  • 5.00% Non-US Bonds (BNDX)

Check the best mutual funds and ETFs at What Is The Best ETF And Mutual Fund?

Where can I learn more about Charles Schwab managed portfolios?

Charles Schwab has a good youtube channel with lots of useful information. Here are the managed portfolios at Schwab.

Suggestions for your next steps

Finding the right portfolio is hard. Maintaining your portfolio is also daunting.

If you want access to our high-performing portfolios then you want to take a look at the premium portfolios.

This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity low-cost for you to get more money from your investment portfolios. We think it’s a no-brainer. The 20 portfolios are the best among the literally hundreds of other portfolios we have benchmarked since we started.

You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.

Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Rebalancing lowers your portfolio risk and can increase your returns.