WESTLAKE, Texas-- According to Charles Schwab’s latest SDBA Indicators Report, an industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts (SDBAs), the average account balance across all participant accounts finished at $335,857 for the first quarter of 2025, down 4.7% from the fourth quarter of 2024 and up 2.3% year-over-year.
SDBAs are brokerage accounts within workplace retirement plans, including 401(k)s and other types of retirement plans, that participants can use to invest retirement savings in individual stocks and bonds, as well as exchange-traded funds (ETFs), mutual funds and other securities that are not part of their retirement plan's core investment offerings.
Macroeconomic uncertainty and increased volatility dampened equity markets and sentiment in the first quarter with the S&P 500 declining 5% amid mixed sector performance. Energy, Healthcare and Utilities led while Technology and Consumer Discretionary stocks were a drag on overall Q1 performance.
Allocation Trends
Overall, participant holdings in the first quarter were similar to the fourth quarter of last year.
- Equities: Equities continued to hold the majority of assets at 33.4%. The largest equity sector holding was Information Technology at 35.9%; Apple (9.7%) and Nvidia (9.3%) remained the top two holdings, while Tesla (6.0%), Amazon (4.7%) and Microsoft (3.2%) continued to round out the top five.
- Mutual funds:Mutual funds remained the second largest holding at 27.3%, with the largest allocation going to large-cap stock funds at 33.2%, followed by money market funds (18.3%) and taxable bond funds (15.2%).
- ETFs: ETFs held 27.0% of participant assets. Investors allocated the most dollars to US equity (50.7%), followed by US fixed income (13.9%) and international equity (11.6%).
- Cash and Fixed Income: Cash and equivalents held 8.0% of participant assets while 4.3% of assets were held in fixed income.
Other Report Highlights
- Trading volumes averaged 15.9 trades per account, up slightly from Q4 2024.
- Advised accounts held higher average account balances compared to non-advised accounts, $525,213 vs $293,605.
- Gen X again had the most advised accounts (52.3%), followed by Millennials (24.4%) then Baby Boomers (21.5%).
- Gen X made up 46.9% of SDBA participants, followed by Millennials (26.4%) and Baby Boomers (23.6%).
- Boomers again had the highest account balances at $560,250, followed by Gen X at $343,831 and Millennials with $124,381.
- On average, participants held 11.8 positions in their SDBAs at the end of Q1 2025, which is unchanged from the prior quarter.
About the SDBA Indicators Report
The SDBA Indicators Report includes data collected from approximately 308,000 retirement plan participants who currently have balances between $5,000 and $10 million in their Schwab Personal Choice Retirement Account®. Data is extracted quarterly on all accounts that are open as of quarter-end and meet the balance criteria.
The SDBA Indicators Report tracks a wide variety of investment activity and profile information on participants with a Schwab Personal Choice Retirement Account (PCRA), ranging from asset allocation trends and asset flow in various equity, exchange-traded fund and mutual fund categories, to age trends and trading activity. The SDBA Indicators Report provides insight into PCRA users’ perceptions of the markets and the investment decisions they make.
Data contained in this quarterly report is from the first quarter of 2025, and can be found here, along with prior reports.
About Charles Schwab
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Disclosures:
Investment and Insurance Products: Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • No Bank Guarantee • May Lose Value
Schwab Personal Choice Retirement Account (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker/dealer, which also provides other brokerage and custody services to its customers.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
Money Market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. Data here is obtained from what are considered reliable sources; however, its accuracy, completeness or reliability cannot be guaranteed.
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Source: The Charles Schwab Corporation