Build Schwab’s Managed Portfolios With ETFs

Learn to build Charles Schwab managed portfolios with ETFs. How do they compare against other portfolios?
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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. They have low-risk portfolios and high-risk portfolios. They use DFA funds.

For the past 10 years, the Schwab Managed Portfolios, Aggressive Growth has returned 8.49 with a standard deviation of 15.58. The dividend yield is 2.19. The 30-year return is 8.65%. Year to date the Schwab Managed Portfolio, Aggressive Growth has returned 13.30%%.

What is the historical return of Charles Schwab managed portfolios?

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

NameAsset class countYear to dateReturn in 202010 year returnCAGR since 1989 (%)Risk levelExpense ratio
Schwab Managed Portfolio, Conservative Income61.18%4.393.375.6410.10%
Schwab Managed Portfolio, Income With Growth103.76%6.144.736.3910.09%
Schwab Managed Portfolio, Balanced117.01%7.415.47.1610.11%
Schwab Managed Portfolio, Balanced With Growth119.68%9.046.617.8920.11%
Schwab Managed Portfolio, Growth911.96%10.227.528.2930.11%
Schwab Managed Portfolio, Aggressive Growth713.30%11.398.498.6530.09%

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 202010 year returnCAGR since 1989 (%)Draw Down
Premium Portfolio15.92%18.2913.8410.77-37.63%
Premium Portfolio8.30%18.118.6311.14-44.87%
Premium Portfolio13.48%19.712.8410.49-32.77%
Premium Portfolio20.78%3.198.5210.59-36.46%
Premium Portfolio20.17%3.668.6210.48-36.35%
Premium Portfolio15.18%21.0313.7810.83-37.00%
Premium Portfolio19.24%8.711.5610.65-35.26%
Premium Portfolio15.41%7.488.3910.64-37.91%
Premium Portfolio16.16%5.3610.8811.23-35.43%
Premium Portfolio20.81%3.4210.2110.47-40.85%

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)

Here is how we select the right ETFs

There are a lot of ETFs! It is laborious work 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.

We have carefully selected an ETF 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. 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. The Charles Schwab story is interesting in itself and is vividly described in 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
Charles Schwab’s breakdown of which asset classes they use in their managed portfolios. Source: charlesschwab.com

Asset Allocation of 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?

Resources for 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 correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

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 may increase your returns.


If you want access to our high-performing portfolios then you need to take a look at the premium portfolios. This is a paid product that gives you the 59 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to have a shot at increasing the returns of your portfolio.

Portfolioeinstein Premium Portfolios
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