Schwab Reports Monthly Activity Highlights

Rhea-AI Summary

The Charles Schwab Corporation's Monthly Activity Report for May 2021 indicates significant growth in client assets and new client activity. Core net new assets totaled $28.1 billion, with net new assets of $27.9 billion excluding mutual fund clearing. Total client assets reached $7.40 trillion, marking an 84% increase year-over-year and a 1% rise from April 2021. Additionally, average interest-earning assets were $528.6 billion, reflecting a 46% increase compared to May 2020, yet flat from the previous month.

Positive

• Core net new assets reached $28.1 billion.
• Total client assets rose to $7.40 trillion, up 84% year-over-year.
• Average interest-earning assets increased to $528.6 billion, up 46% from May 2020.

Negative

• None.

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2021 include:

• 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.

 

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FAQ

What were the core net new assets for Charles Schwab in May 2021?

Core net new assets totaled $28.1 billion.

How much did total client assets increase for Charles Schwab in May 2021?

Total client assets reached $7.40 trillion, an 84% increase from May 2020.

What is the average interest-earning assets figure for Charles Schwab in May 2021?

Average interest-earning assets were $528.6 billion, up 46% from May 2020.

How do new assets compare month-over-month for Charles Schwab in May 2021?

New assets increased by 1% compared to April 2021.