The Charles Schwab Corporation - SCHW STOCK NEWS

Schwab Asset Management launched the Schwab Mortgage-Backed Securities ETF (SMBS) with an industry-leading low expense ratio of 0.03%. The ETF tracks the Bloomberg US MBS Float Adjusted Total Return Index and invests in investment-grade mortgage-backed securities guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac. The launch marks Schwab Asset Management's 15th anniversary in the ETF space, where it has grown to become the fifth-largest ETF provider.

Charles Schwab has released its October 2024 Monthly Activity Report, highlighting significant financial metrics. The company attracted $24.6 billion in core net new assets and $21.0 billion in net new assets excluding mutual fund clearing. Total client assets reached $9.85 trillion, marking a 29% increase year-over-year but a 1% decrease from September 2024. Transactional sweep cash grew by $10.0 billion to $394.0 billion compared to the previous month.

Charles Schwab employees packed and donated nearly one million meals to families in need across the United States during its annual 'Season of Giving' campaign. Thousands of volunteers across 13 U.S. cities participated in the initiative, with the Charles Schwab Foundation contributing an additional $300,000 to local food banks and hunger relief nonprofits. Employees volunteered more than 6,000 hours, organizing meal-packing events and in-office drives. The company partnered with Harvest Pack to coordinate the meal donations, addressing food insecurity which affects over 47 million people, including 1 in 5 children annually.

Schwab Asset Management announced the launch of the Schwab Mortgage-Backed Securities ETF (NYSE Arca: SMBS), expected to begin trading around November 19. With a competitive 0.03% expense ratio, the ETF will provide access to investment-grade mortgage-backed securities guaranteed by U.S. government agencies. The fund aims to track the Bloomberg US MBS Float Adjusted Total Return Index and invests in securities backed by Ginnie Mae, Fannie Mae, and Freddie Mac. This launch marks Schwab Asset Management's position as the fifth-largest ETF provider, celebrating 15 years in the ETF space.

The Schwab Trading Activity Index™ (STAX) increased to 48.37 in October from 47.10 in September, ranking 'moderate low' compared to historic averages. During this period, Schwab clients were net buyers of equities but continued rotating out of individual stocks into ETFs, mutual funds, and fixed income securities. The earnings season showed a 79% EPS beat rate, though revenue beat rates were softer at 59%. Clients sold positions in banking, fintech, retail, and travel sectors while maintaining interest in AI stocks. On a sector basis, investors were net buyers of Health Care, Utilities, and Consumer Discretionary, while selling was strongest in Information Technology, Financials, and Energy.

Charles Schwab announced plans to expand its 24-hour trading capabilities to include stocks in the S&P 500, Nasdaq-100 and hundreds of additional ETFs for 24/5 trading. The company will begin piloting expanded overnight access with select clients, aiming for full client access in 2025. The expansion builds upon Ameritrade's 2018 pioneering of 24/5 trading. Additionally, Schwab unveiled new platform enhancements across thinkorswim, Schwab.com, and Schwab Mobile, including improved options chain functionality, order status features, and streaming quotes.

Charles Schwab (SCHW) has declared a quarterly cash dividend of $0.25 per common share, payable November 22, 2024, to stockholders of record as of November 8, 2024. Additionally, the company announced dividends on seven series of preferred stock, all payable December 2, 2024, to stockholders of record as of November 15, 2024. The preferred stock dividends range from $0.278250 to $25.000000 per depositary share across different series, including Series D, F, G, H, I, J, and K, with varying fixed and fixed-to-floating rates.

According to Charles Schwab's 2024 401(k) Participant Study, workers' financial health shows slight improvement, with 24% reporting very good financial health compared to 20% last year. The study reveals that 64% of workers acknowledge their employers' efforts to help manage financial stress, up from 52% in 2023.

Key employer actions include salary increases (39%), flexible work arrangements (19%), and increased 401(k) match (18%). Notably, 84% of workers value flexible work arrangements, with 57% willing to sacrifice salary increases for work autonomy. The study also highlights growing interest in SECURE 2.0 Act provisions, with 32% of workers seeking guidance on how these changes affect their retirement plans.

Charles Schwab reported strong Q3 2024 results, with total client assets reaching a record $9.92 trillion, up 27% year-over-year. Core net new assets totaled $95.3 billion for the quarter, bringing the year-to-date total to $252.1 billion, a 10% increase from 2023. Net revenues grew 5% year-over-year to $4.8 billion, while net income reached $1.4 billion, or $0.71 per diluted share. Adjusted earnings per share were $0.77.

The company saw robust client engagement, with active brokerage accounts up 4% to 36.0 million. Managed Investing net flows reached $40 billion year-to-date, a 65% increase from 2023. The adjusted pre-tax profit margin was 41.2%, reflecting revenue growth and expense discipline. Client transactional sweep cash grew by $9 billion sequentially, allowing for a $8.9 billion reduction in Bank Supplemental Funding.