Press Release

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 $383,087 for the third quarter of 2025, up by 10.3% year-over-year and a 5.7% increase from the second quarter.

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.

In Q3, U.S. financial markets posted strong gains with all major indices reaching record highs following a rally led by robust corporate earnings, continued enthusiasm around artificial intelligence, and the Federal Reserve’s anticipated interest rate cut in September.

Allocation trends

• Equities: Equities continued to hold the majority of assets at 35.7%. The largest equity sector holding was Information Technology at 38.6%, with NVIDIA maintaining the top position as the largest individual stock holding followed by Apple, Tesla, Amazon, and Microsoft.
• ETFs: ETFs held 28.6% of participant assets. Investors allocated the most dollars to US equity (49.5%), followed by US fixed income (12.5%) and international equity (12%).
• Mutual Funds: Mutual funds held steady at 25.4%, with the largest allocation going to large-cap stock funds at 34.4%, followed by money market funds at 17.4% and taxable bond funds at 14%.
• Cash and Fixed Income: Cash and equivalents held 6.8% of participant assets while 3.5% of assets were held in fixed income.

Other Report Highlights

• Trading volumes were up slightly from last quarter, at an average of 16.8 trades per account and higher when compared to volume a year ago (13 trades).
• Advised accounts held higher average account balances compared to non-advised accounts, $580,339 vs $338,938 – both reflecting an increase from last quarter.
• Gen X again had the most advised accounts (52.5%), followed by Millennials (25.6%) then Baby Boomers (20%).
• Gen X made up 46.9% of SDBA participants, followed by Millennials (27.7%) and Baby Boomers (22%).
• Boomers again had the highest account balances at $633,644, followed by Gen X at $407,959 and Millennials with $154,042.
• On average, participants held 11.9 positions in their PCRA, which has been relatively consistent over the last year.

About the SDBA Indicators Report

The SDBA Indicators Report includes data collected from approximately 322,000 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 third quarter of 2025, and can be found here, along with prior reports.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube and LinkedIn

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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