The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2021 include:
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- Core net new assets brought to the company by new and existing clients totaled $28.1 billion. Net new assets excluding mutual fund clearing totaled $27.9 billion.
- Total client assets were $7.40 trillion as of month-end May, up 84% from May 2020 and up 1% compared to April 2021.(1)
- Average interest-earning assets were $528.6 billion in May, up 46% from May 2020 and flat compared to April 2021.(1)
(1) |
|
Year over year comparisons are affected by the close of the TD Ameritrade acquisition on October 6, 2020 |
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.1 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.6 million banking accounts, and $7.4 trillion in client assets as of May 31, 2021. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.
| The Charles Schwab Corporation Monthly Activity Report For May 2021 | |||||||||||||||||||||||||||||||||||||||||||||
2020 |
2021 |
Change | |||||||||||||||||||||||||||||||||||||||||||
| May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Mo. | Yr. | |||||||||||||||||||||||||||||||
| Market Indices (at month end) | |||||||||||||||||||||||||||||||||||||||||||||
| Dow Jones Industrial Average | 25,383 |
|
25,813 |
|
26,428 |
|
28,430 |
|
27,782 |
|
26,502 |
|
29,639 |
|
30,606 |
|
29,983 |
|
30,932 |
|
32,982 |
|
33,875 |
|
34,529 |
|
2% |
|
36% |
||||||||||||||||
| Nasdaq Composite | 9,490 |
|
10,059 |
|
10,745 |
|
11,775 |
|
11,168 |
|
10,912 |
|
12,199 |
|
12,888 |
|
13,071 |
|
13,192 |
|
13,247 |
|
13,963 |
|
13,749 |
|
(2%) |
|
45% |
||||||||||||||||
| Standard & Poor’s® 500 | 3,044 |
|
3,100 |
|
3,271 |
|
3,500 |
|
3,363 |
|
3,270 |
|
3,622 |
|
3,756 |
|
3,714 |
|
3,811 |
|
3,973 |
|
4,181 |
|
4,204 |
|
1% |
|
38% |
||||||||||||||||
| Client Assets (in billions of dollars) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Beginning Client Assets | 3,778.3 |
|
4,009.0 |
|
4,110.1 |
|
4,278.0 |
|
4,489.7 |
|
4,395.3 |
|
5,878.5 |
|
6,421.0 |
|
6,691.7 |
|
6,759.6 |
|
6,900.5 |
|
7,069.1 |
|
7,336.1 |
|
|
|
|
||||||||||||||||
| Net New Assets (1) | 97.5 |
|
24.6 |
|
11.2 |
|
20.0 |
|
20.0 |
|
1,596.9 |
|
32.1 |
|
61.7 |
|
34.2 |
|
37.0 |
|
62.6 |
|
37.2 |
|
28.1 |
|
(24%) |
|
(71%) |
||||||||||||||||
| Net Market Gains (Losses) | 133.2 |
|
76.5 |
|
156.7 |
|
191.7 |
|
(114.4 |
) |
(113.7 |
) |
510.4 |
|
209.0 |
|
33.7 |
|
103.9 |
|
106.0 |
|
229.8 |
|
31.5 |
|
|
|
|
||||||||||||||||
| Total Client Assets (at month end) | 4,009.0 |
|
4,110.1 |
|
4,278.0 |
|
4,489.7 |
|
4,395.3 |
|
5,878.5 |
|
6,421.0 |
|
6,691.7 |
|
6,759.6 |
|
6,900.5 |
|
7,069.1 |
|
7,336.1 |
|
7,395.7 |
|
1% |
|
84% |
||||||||||||||||
| Core Net New Assets (2) | 17.6 |
|
13.7 |
|
2.7 |
|
20.0 |
|
20.0 |
|
25.6 |
|
32.1 |
|
61.7 |
|
34.2 |
|
51.4 |
|
62.6 |
|
37.2 |
|
28.1 |
|
(24%) |
|
60% |
||||||||||||||||
| Receiving Ongoing Advisory Services (at month end) (3) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Investor Services | 339.8 |
|
345.2 |
|
355.6 |
|
366.8 |
|
361.2 |
|
425.3 |
|
457.1 |
|
471.8 |
|
472.4 |
|
481.3 |
|
495.2 |
|
511.1 |
|
517.8 |
|
1% |
|
52% |
||||||||||||||||
| Advisor Services (4) | 1,711.7 |
|
1,747.5 |
|
1,818.5 |
|
1,900.5 |
|
1,870.1 |
|
2,505.5 |
|
2,715.7 |
|
2,828.3 |
|
2,840.6 |
|
2,913.3 |
|
2,997.9 |
|
3,112.5 |
|
3,150.4 |
|
1% |
|
84% |
||||||||||||||||
| Client Accounts (at month end, in thousands) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Active Brokerage Accounts | 14,007 |
|
14,107 |
|
14,220 |
|
14,311 |
|
14,393 |
|
29,013 |
|
29,202 |
|
29,629 |
|
30,534 |
|
31,523 |
|
31,902 |
|
31,877 |
|
32,110 |
|
1% |
|
129% |
||||||||||||||||
| Banking Accounts | 1,448 |
|
1,463 |
|
1,480 |
|
1,493 |
|
1,486 |
|
1,496 |
|
1,504 |
|
1,499 |
|
1,518 |
|
1,542 |
|
1,608 |
|
1,562 |
|
1,584 |
|
1% |
|
9% |
||||||||||||||||
| Corporate Retirement Plan Participants | 1,714 |
|
1,716 |
|
1,712 |
|
1,715 |
|
1,722 |
|
2,072 |
|
2,045 |
|
2,054 |
|
2,069 |
|
2,093 |
|
2,105 |
|
2,116 |
|
2,130 |
|
1% |
|
24% |
||||||||||||||||
| Client Activity |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| New Brokerage Accounts (in thousands) (5) | 1,250 |
|
201 |
|
206 |
|
202 |
|
184 |
|
14,718 |
|
430 |
|
626 |
|
1,095 |
|
1,211 |
|
847 |
|
609 |
|
549 |
|
(10%) |
|
(56%) |
||||||||||||||||
| Client Cash as a Percentage of Client Assets (6) | 14.0% |
13.6% |
13.0% |
12.5% |
12.8% |
13.4% |
12.4% |
12.3% |
12.2% |
11.8% |
11.5% |
10.9% |
10.8% |
(10) bp |
|
(320) bp |
|||||||||||||||||||||||||||||
| Derivative Trades as a Percentage of Total Trades | 12.2% |
10.6% |
13.1% |
13.8% |
14.5% |
20.5% |
19.4% |
18.9% |
17.4% |
16.6% |
18.5% |
20.4% |
20.9% |
50 bp |
|
870 bp |
|||||||||||||||||||||||||||||
| Selected Average Balances (in millions of dollars) |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Average Interest-Earning Assets (7,8) | 361,814 |
|
373,986 |
|
379,521 |
|
384,690 |
|
392,784 |
|
442,119 |
|
466,677 |
|
482,394 |
|
517,306 |
|
514,885 |
|
520,074 |
|
527,194 |
|
528,642 |
|
- |
|
46% |
||||||||||||||||
| Average Margin Balances (8) | 17,839 |
|
18,658 |
|
19,802 |
|
21,190 |
|
22,780 |
|
48,095 |
|
53,916 |
|
59,142 |
|
62,999 |
|
69,064 |
|
71,266 |
|
72,863 |
|
75,921 |
|
4% |
|
N/M |
||||||||||||||||
| Average Bank Deposit Account Balances (8,9) | - |
- |
- |
- |
- |
132,030 |
|
162,315 |
|
163,463 |
|
167,980 |
|
167,433 |
|
164,866 |
|
162,392 |
|
160,459 |
|
(1%) |
|
N/M |
|||||||||||||||||||||
| Mutual Fund and Exchange-Traded Fund | |||||||||||||||||||||||||||||||||||||||||||||
| Net Buys (Sells) (10,11) (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Equities | (1,610 |
) |
(2,877 |
) |
(3,280 |
) |
(727 |
) |
(1,372 |
) |
(1,305 |
) |
10,980 |
|
13,875 |
|
8,234 |
|
14,246 |
|
16,301 |
|
13,422 |
|
9,854 |
|
|||||||||||||||||||
| Hybrid | (518 |
) |
(97 |
) |
(769 |
) |
(124 |
) |
(12 |
) |
(553 |
) |
(402 |
) |
359 |
|
407 |
|
832 |
|
1,133 |
|
877 |
|
1 |
|
|||||||||||||||||||
| Bonds | 6,274 |
|
10,925 |
|
8,611 |
|
9,328 |
|
6,857 |
|
6,765 |
|
5,956 |
|
12,169 |
|
13,601 |
|
9,334 |
|
8,237 |
|
8,940 |
|
5,906 |
|
|||||||||||||||||||
| Net Buy (Sell) Activity (in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
| Mutual Funds (10) | (564 |
) |
1,768 |
|
(147 |
) |
2,568 |
|
757 |
|
(2,260 |
) |
2,832 |
|
6,336 |
|
5,713 |
|
6,273 |
|
6,190 |
|
5,754 |
|
2,022 |
|
|||||||||||||||||||
| Exchange-Traded Funds (11) | 4,710 |
|
6,183 |
|
4,709 |
|
5,909 |
|
4,716 |
|
7,167 |
|
13,702 |
|
20,067 |
|
16,529 |
|
18,139 |
|
19,481 |
|
17,485 |
|
13,739 |
|
|||||||||||||||||||
| Money Market Funds | 4,833 |
|
(5,673 |
) |
(9,039 |
) |
(5,614 |
) |
(6,627 |
) |
(4,021 |
) |
(5,908 |
) |
(7,332 |
) |
(5,248 |
) |
(4,405 |
) |
(4,528 |
) |
(5,153 |
) |
(3,988 |
) |
|||||||||||||||||||
(1) |
February 2021 includes an outflow of $14.4 billion from a mutual fund clearing services client. October 2020 includes an inflow of $1.6 trillion related to the acquisition of TD Ameritrade. July 2020 includes an inflow of $8.5 billion related to the acquisition of Wasmer, Schroeder & Company, LLC. June 2020 includes an inflow of $10.9 billion from a mutual fund clearing services client. May 2020 includes an inflow of $79.9 billion related to the acquisition of the assets of USAA’s Investment Management Company. | |||||||||||||||||||||||||||||
(2) |
Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client. These flows may span multiple reporting periods. | |||||||||||||||||||||||||||||
(3) |
Beginning in December 2020, AdvisorDirect® assets are presented as Investor Services. In December 2020, $46.5 billion and $50.4 billion for October and November, respectively, were reclassed from Advisor Services to Investor Services. | |||||||||||||||||||||||||||||
(4) |
Excludes Retirement Business Services. | |||||||||||||||||||||||||||||
(5) |
October 2020 includes 14.5 million new brokerage accounts related to the acquisition of TD Ameritrade. May 2020 includes 1.1 million new brokerage accounts related to the acquisition of the assets of USAA’s Investment Management Company. | |||||||||||||||||||||||||||||
(6) |
Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets. | |||||||||||||||||||||||||||||
(7) |
Represents average total interest-earning assets on the company's balance sheet. | |||||||||||||||||||||||||||||
(8) |
October 2020 averages reflect a full month of Schwab balances and 26 days of TD Ameritrade balances following the acquisition closing on October 6, 2020. Calculating the consolidated daily average from the closing date onwards would result in Average Interest-Earning Assets, Average Margin Balances, and Average Bank Deposit Account Balances of $450,004 million, $52,744 million, and $157,414 million, respectively. | |||||||||||||||||||||||||||||
(9) |
Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions. | |||||||||||||||||||||||||||||
(10) |
Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to Investment Managers. Excludes money market fund transactions. | |||||||||||||||||||||||||||||
| Additional fund categories can be found at: https://www.aboutschwab.com/financial-reports. | ||||||||||||||||||||||||||||||
(11) |
Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs. Additional fund categories can be found at: https://www.aboutschwab.com/financial-reports. | |||||||||||||||||||||||||||||
| N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful. | ||||||||||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210614005153/en/
Contacts
MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525
INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524
