Schrodinger Portfolio Review: January 29, 2026 | ITA Asset Management

The question, “Who will manage the family portfolio if I die?” prompted research into Robo Advisor’s services. I researched numerous services several years ago and actually invested money with various brokers to test their services. Performance and cost were the two main criteria when researching Robo Advisor options. I ultimately settled on Schwab as the owner of this portfolio. Fidelity is another option readers might explore. Schwab offers this service for free, but at the price of holding seven (7) to eight (8) percent cash at all times. The following review provides information on Schwab’s “Intelligent Portfolio,” including its asset allocation and performance. Be sure to check out the four risk ratios at the bottom of this blog post.

If you are looking for a passively managed portfolio, look no further than the Schrodinger as this portfolio requires no investment management skills from the owner. All you have to do, once this Robo Advisor portfolio is set up, is add new money. The Schrödinger happens to be housed at Schwab. Other brokers have their own “Intelligent Portfolios” so you will need to do your own research to find out which broker to use for a computer managed account.

I recommend having at least one ‘Intelligent Portfolio’ as part of the family portfolios as it provides a different kind of diversity as well as a performance benchmark. If the family member managing the family portfolio dies first, actively managed accounts can easily be transferred to a Robo Advisor account. At that point, the wallet functions on autopilot.

Schrodinger Asset Allocation Holdings

Below you will find the current holdings for the Schrödinger. The owner of this portfolio requested a rather aggressive asset allocation, as you can see in the pie chart below. Older investors will likely request a more conservative approach, such as a stock-to-bond ratio of 40/60 or 30/70. The Schrodinger consists of approximately 79% stocks, 13% bonds and 8% cash. Keep in mind that cash is a drag on a portfolio in a bull market, but an asset in a bear market.

Schrodinger performance data

As of 12/31/2021, the Schrödinger has performed exceptionally well during the 2022 bear market and has turned higher during the bull market in recent years. Very few transactions took place during this period, so the portfolio is tax efficient. Because the portfolio exceeds the $50,000 level, Schwab manages the portfolio in a tax-efficient manner. So far this has not proven necessary.

The following data shows how well the Schrodinger performed compared to several potential benchmarks. Outperforming the S&P 500 (SPY) is no easy hurdle, but the Schrödinger has managed to surpass this high bar.

Schrodinger risk ratios

Most risk ratio values ​​have been quite consistent over the past year. Yes, the slope of the Jensen Alpha is positive (0.14) due to a low point when the rates were announced last April. The Schrodinger’s current beta is 0.717, so the portfolio achieves these performance results without taking on too much risk.

Both the Jensen and Information Ratios have maintained a positive position throughout the year. These are the two most critical risk measurements. Simply put, the Schrödinger is performing much better than I expected when this portfolio was set up on July 31, 2017.

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Comments and questions are very welcome.

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