Although mutual funds have been around for a while, "wrapping" mutual funds from different fund families into pre-defined models has only recently started to catch on. Registered Investment Advisors (RIA's) have been designing fee based, no-load mutual fund portfolios for their clients since Schwab invented the omnibus mutual fund trading account but now the "big boys" are getting involved. This product is similar to the Morningstar Managed Portfolios, also available for a minimum $50,000 investment. Whereas Morningstar selects funds based on their Star Ranking System, Schwab will be selecting funds from their OneSource Select List (TM). It should be interesting to see which product performs better over the next few years. However, for investors that either lack the energy or the expertise to pick mutual funds on their own, both products offer a reasonable alternative to going it alone.