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Schwab Reports Monthly Activity Highlights

03/12/2021

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

  • Core net new assets brought to the company by new and existing clients totaled $51.4 billion. Net new assets excluding mutual fund clearing totaled $50.3 billion.
  • Total client assets were $6.90 trillion as of month-end February, up 79% from February 2020 and up 2% compared to January 2021.(1)
  • New brokerage accounts were 1.2 million in February, up over 200% from February 2020 and up 11% compared to January 2021.(1)

(1)

Year-over-year comparisons are affected by the recent close of the TD Ameritrade acquisition on October 6, 2020

Commentary from the CFO

Peter Crawford, Executive Vice President and Chief Financial Officer, provides perspectives on recent trends in client trading activity at: https://www.aboutschwab.com/cfo-commentary.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 31.5 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.5 million banking accounts, and $6.9 trillion in client assets as of February 28, 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 February 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

Change

 

 

 

 

Feb

 

Mar

 

Apr

 

May

 

Jun

 

Jul

 

Aug

 

Sep

 

Oct

 

Nov

 

Dec

 

Jan

 

Feb

 

Mo.

 

Yr.

Market Indices (at month end)
Dow Jones Industrial Average

25,409

 

21,917

 

24,346

 

25,383

 

25,813

 

26,428

 

28,430

 

27,782

 

26,502

 

29,639

 

30,606

 

29,983

 

30,932

 

3%

 

22%

Nasdaq Composite

8,567

 

7,700

 

8,890

 

9,490

 

10,059

 

10,745

 

11,775

 

11,168

 

10,912

 

12,199

 

12,888

 

13,071

 

13,192

 

1%

 

54%

Standard & Poor’s 500

2,954

 

2,585

 

2,912

 

3,044

 

3,100

 

3,271

 

3,500

 

3,363

 

3,270

 

3,622

 

3,756

 

3,714

 

3,811

 

3%

 

29%

Client Assets (in billions of dollars)

 

 

 

Beginning Client Assets

4,051.6

 

3,862.8

 

3,496.9

 

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

 

 

 

 

Net New Assets (1)

24.4

 

27.9

 

15.3

 

97.5

 

24.6

 

11.2

 

20.0

 

20.0

 

1,596.9

 

32.1

 

61.7

 

34.2

 

37.0

 

8%

 

52%

Net Market (Losses) Gains

(213.2

)

(393.8

)

266.1

 

133.2

 

76.5

 

156.7

 

191.7

 

(114.4

)

(113.7

)

510.4

 

209.0

 

33.7

 

103.9

 

 

 

 

Total Client Assets (at month end)

3,862.8

 

3,496.9

 

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

 

2%

 

79%

Core Net New Assets (2)

24.4

 

27.9

 

15.3

 

17.6

 

13.7

 

2.7

 

20.0

 

20.0

 

25.6

 

32.1

 

61.7

 

34.2

 

51.4

 

50%

 

111%

Receiving Ongoing Advisory Services (at month end) (3)

 

 

 

Investor Services

323.2

 

291.5

 

309.9

 

339.8

 

345.2

 

355.6

 

366.8

 

361.2

 

425.3

 

457.1

 

471.8

 

472.4

 

481.3

 

2%

 

49%

Advisor Services (4)

1,694.0

 

1,531.3

 

1,647.9

 

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

 

3%

 

72%

Client Accounts (at month end, in thousands)

 

 

 

Active Brokerage Accounts

12,521

 

12,736

 

12,866

 

14,007

 

14,107

 

14,220

 

14,311

 

14,393

 

29,013

 

29,202

 

29,629

 

30,534

 

31,523

 

3%

 

152%

Banking Accounts

1,411

 

1,426

 

1,439

 

1,448

 

1,463

 

1,480

 

1,493

 

1,486

 

1,496

 

1,504

 

1,499

 

1,518

 

1,542

 

2%

 

9%

Corporate Retirement Plan Participants

1,726

 

1,721

 

1,696

 

1,714

 

1,716

 

1,712

 

1,715

 

1,722

 

2,072

 

2,045

 

2,054

 

2,069

 

2,093

 

1%

 

21%

Client Activity

 

 

 

New Brokerage Accounts (in thousands) (5)

159

 

283

 

201

 

1,250

 

201

 

206

 

202

 

184

 

14,718

 

430

 

626

 

1,095

 

1,211

 

11%

 

N/M

Client Cash as a Percentage of Client Assets (6)

12.0

%

15.1

%

14.3

%

14.0

%

13.6

%

13.0

%

12.5

%

12.8

%

13.4

%

12.4

%

12.3

%

12.2

%

11.8

%

(40) bp

 

(20) bp

Derivative Trades as a Percentage of Total Trades

11.5

%

7.0

%

10.2

%

12.2

%

10.6

%

13.1

%

13.8

%

14.5

%

20.5

%

19.4

%

18.9

%

17.4

%

16.6

%

(80) bp

 

510 bp

Mutual Fund and Exchange-Traded Fund

 

 

 

Net Buys (Sells) (7,8) (in millions of dollars)

 

 

 

Large Capitalization Stock

(178

)

984

 

(693

)

(768

)

(1,254

)

(2,536

)

(1,422

)

(1,360

)

(935

)

4,454

 

3,693

 

(1,604

)

3,143

 

 

 

 

Small / Mid Capitalization Stock

(531

)

(954

)

151

 

(401

)

(1,063

)

(1,476

)

(441

)

(497

)

(753

)

2,431

 

2,293

 

1,841

 

1,492

 

 

 

 

International

132

 

(2,116

)

(2,207

)

(1,953

)

(1,580

)

(773

)

230

 

370

 

168

 

2,110

 

4,112

 

4,330

 

4,439

 

 

 

 

Specialized

397

 

333

 

2,059

 

1,512

 

1,020

 

1,505

 

906

 

115

 

215

 

1,985

 

3,777

 

3,667

 

5,172

 

 

 

 

Hybrid

(257

)

(4,790

)

(860

)

(518

)

(97

)

(769

)

(124

)

(12

)

(553

)

(402

)

359

 

407

 

832

 

 

 

 

Taxable Bond

3,830

 

(23,142

)

1,642

 

5,469

 

9,215

 

7,314

 

7,680

 

5,734

 

5,904

 

4,825

 

10,004

 

10,922

 

8,418

 

 

 

 

Tax-Free Bond

1,066

 

(5,229

)

(242

)

805

 

1,710

 

1,297

 

1,648

 

1,123

 

861

 

1,131

 

2,165

 

2,679

 

916

 

 

 

 

Net Buy (Sell) Activity (in millions of dollars)

 

 

 

Mutual Funds (7)

(565

)

(34,382

)

(3,863

)

(564

)

1,768

 

(147

)

2,568

 

757

 

(2,260

)

2,832

 

6,336

 

5,713

 

6,273

 

 

 

 

Exchange-Traded Funds (8)

5,024

 

(532

)

3,713

 

4,710

 

6,183

 

4,709

 

5,909

 

4,716

 

7,167

 

13,702

 

20,067

 

16,529

 

18,139

 

 

 

 

Money Market Funds

1,312

 

(1,233

)

8,465

 

4,833

 

(5,673

)

(9,039

)

(5,614

)

(6,627

)

(4,021

)

(5,908

)

(7,332

)

(5,248

)

(4,405

)

 

 

 

Selected Average Balances (in millions of dollars)

 

 

 

Average Interest-Earning Assets (9,10)

278,966

 

317,850

 

353,018

 

361,814

 

373,986

 

379,521

 

384,690

 

392,784

 

442,119

 

466,677

 

482,394

 

517,306

 

514,885

 

-

 

85%

Average Bank Deposit Account Balances (10,11)

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

132,030

 

162,315

 

163,463

 

167,980

 

167,433

 

-

 

N/M

(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 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.

(8)

Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs.

(9)

Represents average total interest-earning assets on the company's balance sheet.

(10)

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 and Average Bank Deposit Account Balances of $450,004 million and $157,414 million, respectively.

(11)

Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions.

 

N/M - Not meaningful

 

MEDIA:
Mayura Hooper
Charles Schwab
Phone: 415-667-1525

INVESTORS/ANALYSTS:
Jeff Edwards
Charles Schwab
Phone: 415-667-1524

Source: The Charles Schwab Corporation

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