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 $362,302 for the second quarter of 2025, up 7.9% from the first quarter and up 8.1% 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.
The second quarter began with market volatility reflecting global trade concerns and ended with a strong stock market rebound and positive overall sentiment. The S&P 500 gained 10.9%, reaching fresh all-time highs, driven largely by technology and communication sector performance and strong corporate earnings.
Allocation Trends
- Equities: Equities remained the largest asset category at 34.8% of participant holdings. Information Technology was again the largest sector at 37.9% of equity assets, up from the prior quarter. NVIDIA reclaimed the top individual stock position, followed by Apple, Tesla, Amazon, and Microsoft.
- ETFs: ETFs rose to 27.9% of total assets, overtaking mutual funds as the second most popular investment vehicle. U.S. equity ETFs made up 49.9% of ETF holdings, followed by U.S. fixed income ETFs (13.0%) and international equity ETFs (11.9%).
- Mutual funds: Mutual funds accounted for 26.3% of participant assets, led by large-cap stock funds (33.9% of mutual fund assets), money market funds (17.9%), and taxable bond funds (14.3%).
- Cash and Fixed Income: Cash and equivalents comprised 7.2% of participant assets, while fixed income made up 3.9%.
Other Report Highlights
- Trading volumes averaged 15.4 trades per account, similar to Q1.
- Gen X made up 46.9% of SDBA participants, followed by Millennials (27.0%) and Baby Boomers (22.8%).
- Boomers again had the highest average account balance at $599,314, followed by Gen X at $378,972 and Millennials with $141,067.
- Advised accounts averaged $555,653 vs $319,078 for non-advised. Advised investors held nearly twice as many positions (19.6 vs. 10.1) and had more diversified allocations.
- Gen X again had the most advised accounts (52.4%), followed by Millennials (25.0%) then Baby Boomers (20.7%).
- On average, participants held 11.8 positions in their SDBAs at the end of Q2 2025, which has been consistent over the last year.
About the SDBA Indicators Report
The SDBA Indicators Report includes data collected from approximately 315,000 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 second 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