Schwab Intelligent Portfolios® Selection Process

June 26, 2020

Exchange-traded funds (ETFs) are the basic building blocks of Schwab Intelligent Portfolios, which includes 53 of the 2,000+ ETFs in the marketplace. ETFs are selected based on a set of criteria that includes their ability to provide exposure to broad asset classes, low operating expense ratios, efficient trading characteristics, and close tracking to their targeted index. Most asset classes within Schwab Intelligent Portfolios consists of a primary ETF and a secondary ETF, which is used mainly for tax-loss harvesting purposes.

Our portfolios are designed to be low cost, and range in weighted average annual ETF Operating Expense Ratios (OERs) from 0.05% to 0.18%. Since Schwab Intelligent Portfolios charges no advisory fees, trading commissions or account service fees, considering OERs are an important part of keeping costs low for investors.


The ETF fund list shown below is representative of Schwab Intelligent Portfolios as of April 30, 2020. Your actual portfolio may differ.

Stocks Primary ETF Secondary ETF
US Large Company SCHX – Schwab U.S. Large-Cap VOO–Vanguard S&P 500
US Large Company–Fundamental FNDX–Schwab Fundamental U.S. Large Company PRF–Invesco FTSE RAFI US 1000
US Small Company SCHA–Schwab U.S. Small-Cap VB–Vanguard Small-Cap
US Small Company–Fundamental FNDA–Schwab Fundamental U.S. Small Company PRFZ–Invesco FTSE RAFI US 1500 Small-Mid
International Developed Large Company SCHF–Schwab International Equity VEA–Vanguard FTSE Developed Markets
International Developed Large Company-Fundamental FNDF–Schwab Fundamental International Large Company PXF–Invesco FTSE RAFI Developed Markets ex-U.S.
International Developed–Small Company SCHC–Schwab International Small-Cap Equity VSS–Vanguard FTSE All-World ex-US Small Cap
International Developed Small Company–Fundamental FNDC–Schwab Fundamental International Small Company PDN–Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid
International Emerging Markets SCHE–Schwab Emerging Markets Equity IEMG–iShares Core MSCI Emerging Markets
International Emerging Markets–Fundamental FNDE–Schwab Fundamental Emerging Markets Large Company PXH–Invesco FTSE RAFI Emerging Markets
US Exchange-Traded REITS SCHH–Schwab U. S. REIT USRT- iShares Core U.S. REIT
International Exchange-Traded REITS HAUZ – Xtrackers International Real Estate VNQI–Vanguard Global ex-U.S. Real Estate
US High Dividend SCHD–Schwab US Dividend Equity VYM–Vanguard High Dividend Yield
International High Dividend HDEF—Xtrackers MSCI EAFE High Dividend Yield Equity ETF VYMI—Vanguard International High Dividend Yield
Master Limited Partnerships MLPA–Global X MLP AMLP–Alerian MLP

Fixed Income Primary ETF Secondary ETF
US Treasuries SCHR–Schwab Intermediate-Term U.S. Treasury IEI—iShares 3-7 Year Treasury Bond
US Investment Grade Corporate Bonds VCIT–Vanguard Intermediate-Term Corporate Bond SPIB–SPDR® Portfolio Intermediate Term Corporate Bond
US Securitized Bonds VMBS–Vanguard Mortgage-Backed Securities MBB–iShares MBS
US Inflation Protected Bonds SCHP–Schwab U.S. TIPS SPIP—SPDR Portfolio TIPS
US Corporate High Yield Bonds HYLB–Xtrackers USD High Yield Corporate Bond USHY—iShares Broad USD High Yield Corp Bond
International Developed Country Bonds BNDX–Vanguard Total International Bond IAGG—iShares Core International Aggregate Bond
International Emerging Markets Bonds EBND–SPDR® Bloomberg Barclays Emerging Markets Local Bond EMLC– VanEck Vectors JP Morgan EM Local Currency Bond
Preferred Securities PFFD—Global X US Preferred PSK–SPDR Wells Fargo Preferred Stock
Bank Loans BKLN–Invesco Senior Loan N/A
Investment Grade Municipal Bonds VTEB–Vanguard Tax-Exempt Bond TFI– SPDR® Nuveen Bloomberg Barclays Muni Bond
Investment Grade California Municipal Bonds CMF–iShares California Muni Bond PWZ–Invesco California AMT-Free Muni Bond

Commodities Primary ETF Secondary ETF
Gold and Other Precious Metals IAU–iShares Gold Trust GLTR– Aberdeen Standard Physical Precious Metals Basket Shares