Schwab Reports Monthly Activity Highlights

By: The Charles Schwab Corporation via Business Wire

September 15, 2021 at 08:45 AM EDT

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

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210915005285/en/

Core net new assets brought to the company by new and existing clients totaled $51.8 billion. Net new assets excluding mutual fund clearing totaled $50.5 billion.
Total client assets were $7.84 trillion as of month-end August, up 75% from August 2020 and up 3% compared to July 2021.⁽¹⁾
Derivative trades as a percentage of total trades were 23.1% in August 2021, compared with 13.8% in August 2020 and 22.2% in July 2021.⁽¹⁾

(1)

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

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.5 million active brokerage accounts, 2.2 million corporate retirement plan participants, 1.6 million banking accounts, and $7.8 trillion in client assets as of August 31, 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 August 2021

	2020										2021																Change
	Aug		Sep		Oct		Nov		Dec		Jan		Feb		Mar		Apr		May		Jun		Jul		Aug		Mo.	Yr.
Market Indices (at month end)
Dow Jones Industrial Average	28,430		27,782		26,502		29,639		30,606		29,983		30,932		32,982		33,875		34,529		34,503		34,935		35,361		1%	24%
Nasdaq Composite	11,775		11,168		10,912		12,199		12,888		13,071		13,192		13,247		13,963		13,749		14,504		14,673		15,259		4%	30%
Standard & Poor’s^® 500	3,500		3,363		3,270		3,622		3,756		3,714		3,811		3,973		4,181		4,204		4,298		4,395		4,523		3%	29%
Client Assets (in billions of dollars)
Beginning Client Assets	4,278.0		4,489.7		4,395.3		5,878.5		6,421.0		6,691.7		6,759.6		6,900.5		7,069.1		7,336.1		7,395.7		7,574.8		7,642.7
Net New Assets⁽¹⁾	20.0		20.0		1,596.9		32.1		61.7		34.2		37.0		62.6		37.2		28.1		43.5		44.3		51.8		17%	159%
Net Market Gains (Losses)	191.7		(114.4	)	(113.7	)	510.4		209.0		33.7		103.9		106.0		229.8		31.5		135.6		23.6		143.7
Total Client Assets (at month end)	4,489.7		4,395.3		5,878.5		6,421.0		6,691.7		6,759.6		6,900.5		7,069.1		7,336.1		7,395.7		7,574.8		7,642.7		7,838.2		3%	75%
Core Net New Assets⁽²⁾	20.0		20.0		25.6		32.1		61.7		34.2		51.4		62.6		37.2		28.1		43.5		44.3		51.8		17%	159%
Receiving Ongoing Advisory Services (at month end) ⁽³⁾
Investor Services	366.8		361.2		425.3		457.1		471.8		472.4		481.3		495.2		511.1		517.8		525.1		531.9		542.5		2%	48%
Advisor Services ⁽⁴⁾	1,900.5		1,870.1		2,505.5		2,715.7		2,828.3		2,840.6		2,913.3		2,997.9		3,112.5		3,150.4		3,209.3		3,256.5		3,333.4		2%	75%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts	14,311		14,393		29,013		29,202		29,629		30,534		31,523		31,902		31,877		32,110		32,265		32,386		32,513		-	127%
Banking Accounts	1,493		1,486		1,496		1,504		1,499		1,518		1,542		1,608		1,562		1,584		1,574		1,578		1,594		1%	7%
Corporate Retirement Plan Participants	1,715		1,722		2,072		2,045		2,054		2,069		2,093		2,105		2,116		2,130		2,149		2,159		2,188		1%	28%
Client Activity
New Brokerage Accounts (in thousands) ⁽⁵⁾	202		184		14,718		430		626		1,095		1,211		847		609		549		499		402		402		-	99%
Client Cash as a Percentage of Client Assets ⁽⁶⁾	12.5%		12.8%		13.4%		12.4%		12.3%		12.2%		11.8%		11.5%		10.9%		10.8%		10.5%		10.4%		10.3%		(10) bp	(220) bp
Derivative Trades as a Percentage of Total Trades	13.8%		14.5%		20.5%		19.4%		18.9%		17.4%		16.6%		18.5%		20.4%		20.9%		20.6%		22.2%		23.1%		90 bp	930 bp
Selected Average Balances (in millions of dollars)
Average Interest-Earning Assets ^(7,8)	384,690		392,784		442,119		466,677		482,394		517,306		514,885		520,074		527,194		528,642		536,146		546,579		552,372		1%	44%
Average Margin Balances ⁽⁸⁾	21,190		22,780		48,095		53,916		59,142		62,999		69,064		71,266		72,863		75,921		78,410		79,910		79,838		-	N/M
Average Bank Deposit Account Balances ^(8,9)	-		-		132,030		162,315		163,463		167,980		167,433		164,866		162,392		160,459		161,377		151,275		150,896		-	N/M
Mutual Fund and Exchange-Traded Fund
Net Buys (Sells) ^(10,11)(in millions of dollars)
Equities	(727	)	(1,372	)	(1,305	)	10,980		13,875		8,234		14,246		16,301		13,422		9,854		10,873		7,418		8,808
Hybrid	(124	)	(12	)	(553	)	(402	)	359		407		832		1,133		877		1		390		666		569
Bonds	9,328		6,857		6,765		5,956		12,169		13,601		9,334		8,237		8,940		5,906		10,101		6,917		8,044
Net Buy (Sell) Activity (in millions of dollars)
Mutual Funds ⁽¹⁰⁾	2,568		757		(2,260	)	2,832		6,336		5,713		6,273		6,190		5,754		2,022		5,872		2,644		3,876
Exchange-Traded Funds ⁽¹¹⁾	5,909		4,716		7,167		13,702		20,067		16,529		18,139		19,481		17,485		13,739		15,492		12,357		13,545
Money Market Funds	(5,614	)	(6,627	)	(4,021	)	(5,908	)	(7,332	)	(5,248	)	(4,405	)	(4,528	)	(5,153	)	(3,988	)	(3,806	)	(2,501	)	(1,372	)

Note: Certain supplemental details related to the information above can be found at: https://www.aboutschwab.com/financial-reports.

⁽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.

⁽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.

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

⁽⁸⁾

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, Average Margin Balances, and Average Bank Deposit Account Balances of $450,004 million, $52,744 million, and $157,414 million, respectively.

⁽⁹⁾

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

⁽¹⁰⁾

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.

⁽¹¹⁾

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

N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful.