The terms "managed account," "separately managed account" and "advice" are getting confused and confusing these days. Adding some confusion into the mix for the industry, Charles Schwab has announced its own flavor of the SMA.

The discount broker's new Schwab Portfolios offers investors pre-crafted portfolios of stocks, ETFs and mutual funds for investors looking to sock away between $10,000 to $200,000 "without having to do lengthy research and complex analysis."

Investors need at least $25,000 (or $10,000 of retirement funds) to invest in a portfolio of mutual funds, which will include Schwab's proprietary funds as well as funds from its OneSource Select list, according to marketing for the product. The product is free for investors who do not require ongoing guidance, and comes with a cost of 75 basis points and a $50,000 minimum for investors who want to utilize guidance in the form of Schwab's Advised Investing service.

Schwab's Stock Portfolios cost 125 basis points and give investors the option of choosing a portfolio attuned to their risk and goal levels. Each portfolio is made up of 30 stocks that have "A" or "B" Schwab Equity Ratings. The portfolios, which require a minimum investment of $50,000, comes with "ongoing guidance, including an annual portfolio consultation, specific buy and sell recommendations to periodically rebalance the portfolio, and assistance with trades." The cost of trades recommended by the consultant is included in the management fee.  

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