Betterment vs Schwab Intelligent Portfolios
By Itai Varochik | Updated 2026
Quick Verdict
Overall Winner: Betterment (4.5/5)
We tested Betterment and Schwab Intelligent Portfolios side-by-side. Betterment comes out ahead overall, but Schwab Intelligent Portfolios may be better for specific use cases.
Score Breakdown
| Criteria | Betterment | Schwab Intelligent Portfolios |
|---|---|---|
| Features | 8/10 | 3.9/10 |
| Ease of Use | 9/10 | 4.3/10 |
| Value for Money | 8.5/10 | 4.5/10 |
| Customer Support | 8/10 | 3.7/10 |
| Overall | 8.5/10 | 4.1/10 |
Feature Comparison
| Feature | Betterment | Schwab Intelligent Portfolios |
|---|---|---|
| Automated Investing | Yes | No |
| Tax-Loss Harvesting | Yes | No |
| Goal Planning | Yes | No |
| SRI Portfolios | Yes | No |
| Cash Reserve | Yes | No |
| Financial Advice | Yes | No |
| Automatic Rebalancing | Yes | No |
| Automated Portfolio Management | No | No |
| Diversified Portfolios | No | No |
| Tax Loss Harvesting | No | No |
| Schwab Intelligent Portfolios Premium | No | No |
Pricing Comparison
Betterment: 0.25%/year
Schwab Intelligent Portfolios: Free (no advisory fees); Premium $30/month
Betterment Pros & Cons
Pros
- No minimum deposit required to start investing, making it accessible for beginners.
- Industry-leading automated tax-loss harvesting significantly boosts after-tax returns.
- Offers diverse socially responsible investing (SRI) portfolios to align with personal values.
- High-yield Cash Reserve account with competitive APY and FDIC insurance.
- Intuitive and user-friendly interface simplifies financial planning and tracking.
- Goal-based investing framework helps users visualize and achieve financial milestones.
Cons
- Does not support direct trading of individual stocks or ETFs, limiting active investor control.
- Access to a human financial advisor requires a substantial $100,000 minimum balance for the Premium plan.
- Limited customization options for investment portfolios beyond pre-set allocations.
- No cryptocurrency investment options are currently available.
Schwab Intelligent Portfolios Pros & Cons
Pros
- No advisory fees for the core service
- Diversified portfolios with various asset classes
- Automatic rebalancing to maintain target allocation
- Access to Schwab's extensive research and educational resources
- Tax loss harvesting available for taxable accounts
Cons
- Requires a significant cash allocation (typically 6-10%)
- Limited customization options for portfolio holdings
- No human advisor interaction for the free tier
- Higher minimum investment for premium service ($25,000)
- Performance may be impacted by the cash drag
Key Specifications
| Spec | Betterment | Schwab Intelligent Portfolios |
|---|---|---|
| Rating | 4.5/5 | 4.1/5 |
| Pricing | 0.25%/year | Free (no advisory fees); Premium $30/month |
| Year Founded | 2008 | 2015 |
| Headquarters | New York, NY | Westlake, TX |
| Employees | 400+ | N/A |
| Best For Region | United States | N/A |
| Cash Account APY | 4.00%+ | N/A |
Our Verdict
Betterment wins overall. Choose Betterment if you value Hands-off investors wanting automated, diversified portfolios.. Choose Schwab Intelligent Portfolios if you prioritize Beginner investors seeking a hands off approach.
Frequently Asked Questions
Is Betterment better than Schwab Intelligent Portfolios?
Based on our testing, Betterment scores higher with a rating of 4.5/5 compared to Schwab Intelligent Portfolios's 4.1/5. However, the best choice depends on your specific needs.
What is the main difference between Betterment and Schwab Intelligent Portfolios?
Betterment is known for: America's largest independent robo-advisor with automated investing and tax optimization.. Schwab Intelligent Portfolios is known for: Free automated investing from Charles Schwab.
Which is cheaper, Betterment or Schwab Intelligent Portfolios?
Betterment pricing: 0.25%/year. Schwab Intelligent Portfolios pricing: Free (no advisory fees); Premium $30/month.
Can I use Betterment and Schwab Intelligent Portfolios together?
While both tools serve similar purposes in the Robo-Advisors category, some users do use complementary features from both platforms.
What are the pros of Betterment?
No minimum deposit required to start investing, making it accessible for beginners.. Industry-leading automated tax-loss harvesting significantly boosts after-tax returns.. Offers diverse socially responsible investing (SRI) portfolios to align with personal values.
What are the pros of Schwab Intelligent Portfolios?
No advisory fees for the core service. Diversified portfolios with various asset classes. Automatic rebalancing to maintain target allocation
Which robo-advisors should I choose?
Choose Betterment if you value Hands-off investors wanting automated, diversified portfolios.. Choose Schwab Intelligent Portfolios if you prioritize Beginner investors seeking a hands off approach.