Charles Schwab (SCHW) Reports Monthly Activity Highlights

March 12, 2021 8:46 AM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

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



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News

Related Entities

Standard & Poor's, FDIC, SIPC, Definitive Agreement