Schwab Releases Latest Active Trader Sentiment Data

Survey Finds Traders Optimistic Despite Volatile Market Conditions

Tuesday, July 7, 2009 6:15 am PDT



Public Company Information:


SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab today released new survey data showing that active traders are expressing renewed faith in the market, despite continued volatility. The latest Charles Schwab Active Trader Sentiment survey polled nearly 260 individual investors who trade frequently. Findings include:

  • 8 in 10 respondents (81 percent) report a neutral or bullish outlook for the market in the next six months, virtually unchanged from the last survey in February 2009.
  • 53 percent expect the economy to show clear signs of recovery within the next 12 months.
  • 63 percent plan to increase their trading activity in the next six months, up from 49 percent in the February 2009 survey.

The survey also finds more evidence that active traders are looking for ways to better manage risk in their portfolios. For example, there is a clear increase in the number of traders who use exchange traded funds (ETFs) as a way to gain exposure to sector or industry trends. 43 percent of respondents are trading ETFs and 28 percent say ETFs are their preferred investment vehicle (up from 24 percent in February 2009).

“The latest survey results show that trader sentiment is relatively positive despite volatility in the financial markets,” noted Kelli Keough, vice president, Schwab Investor Services. “We’re seeing continued confidence in active investing as traders further educate themselves, employ increased risk management and use more sophisticated trading strategies across a diverse range of investment vehicles.”

Other key survey findings include:

  • Despite the recent market volatility, a majority of traders (57 percent) currently hold 30 percent or less of their long-term portfolio in cash or cash investments.
  • Exactly half (50 percent) of respondents believe the U.S. market is currently most attractive, followed by Emerging markets (32 percent) and Asian markets (18 percent).
  • Traders believe that when the financial markets start to recover, financials (40 percent) and technology (32 percent) will lead the rally.

Supporting documentation for any claims or statistical information is available upon request.

For More Information

Charles Schwab provides active traders with several trading platforms, free seminars and workshops, online education resources and 24-hour access to experienced trading specialists. For more information, please visit or call 800-435-9050.

Survey Methodology

Survey data was derived from responses of nearly 260 active traders and investors collected in May 2009. The data was analyzed by Directive Analytics and has a statistical accuracy of + or – 4.4 percent at 95 percent confidence level.

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.4 million client brokerage accounts, 1.4 million corporate retirement plan participants, 447,000 banking accounts, and $1.1 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and 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 its Advisor Services division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at (0709-9725)


Charles Schwab
Lara Edge, 415-667-0588
Intermarket Communications
Clayton McGratty, 212-754-5425

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