Schwab recently released Schwab Intelligent Portfolios (SIPs), “an automated investment advisory service.” It claims to “make professional advisory services available to anyone with $5,000 to invest.”
In reality, SIPs only offers one service: to “build, monitor and rebalance your portfolio,” and it doesn’t do that well.
We previously explained how SIPs builds a portfolio based on your risk tolerance, a useless measure. Now we review the two pros and nine cons of how Schwab monitors and rebalances portfolios.
Pro: Drift-Based Rebalancing
SIPs provides “daily check-ins” where “excess ETF shares are sold, and the proceeds are used to …Read More