Pure Benchmarks · Portfolio Benchmark Report

Is Your Charles Schwab Portfolio Underperforming?

Charles Schwab is a large discount brokerage offering self-directed trading, managed portfolios, and a default cash sweep for uninvested balances.

Pure Benchmarks ranks real Charles Schwab portfolios against thousands of other verified investor portfolios across nine standardized risk categories, from 100% equity to 90% fixed income. Every portfolio is recategorized daily from actual end-of-day holdings, and Community Nests shows exactly where your Charles Schwab portfolio ranks against other real Charles Schwab clients in the same risk category — built entirely from verified portfolio data, with no firm that manages money able to see any data point on the platform.

Why your Charles Schwab portfolio can lag a pure index baseline

The default-settings drag. Large brokerages often route uninvested cash into a default sweep that earns close to nothing, while in-house managed solutions carry their own expense ratios. Left on default settings, the gap against a pure index baseline widens quietly over time.

What to review on a Charles Schwab portfolio

  • Check the yield on any uninvested cash sitting in the default sweep versus market money-market rates.
  • Look at whether in-house funds or managed solutions add costs beyond a plain index baseline.

Illustrative 10-year comparison — a standard managed portfolio versus a pure index baseline. Figures are illustrative only.

Year Standard managed portfolio Pure index baseline Gap
Year 1 $105,200 $107,000 -$1,800
Year 3 $116,400 $122,500 -$6,100
Year 5 $128,700 $140,300 -$11,600
Year 7 $142,300 $160,600 -$18,300
Year 10 $165,100 $196,700 -$31,600

See exactly where your Charles Schwab portfolio stands.

One clean report against a pure index baseline. No email required.

See Your Free Benchmark Report

This page is an information baseline for comparison only. It is not investment advice and not a recommendation to buy, sell, replace, or transfer any specific asset, account, or firm. Past performance does not guarantee future results. All figures shown are illustrative.