SCHW Charles Schwab Corporation

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of November 2020 include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201214005143/en/

• Core net new assets brought to the company by new and existing clients totaled $32.1 billion. Core net new assets excluding mutual fund clearing totaled $31.5 billion.
• Total client assets were $6.42 trillion as of month-end November, up 63% from November 2019 and up 9% compared to October 2020.(1)
• New brokerage accounts were 430 thousand in November, up over 200% from November 2019 and down 97% compared to October 2020.(1)

(1)

Month-over-month and year-over-year comparisons are affected by the recent 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 29.2 million active brokerage accounts, 2.0 million corporate retirement plan participants, 1.5 million banking accounts, and $6.4 trillion in client assets as of November 30, 2020. 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 November 2020  

2019

2020

Change Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Mo. Yr. Market Indices (at month end) Dow Jones Industrial Average

28,051

 

28,538

 

28,256

 

25,409

 

21,917

 

24,346

 

25,383

 

25,813

 

26,428

 

28,430

 

27,782

 

26,502

 

29,639

 

12

%

6

%

Nasdaq Composite

8,665

 

8,973

 

9,151

 

8,567

 

7,700

 

8,890

 

9,490

 

10,059

 

10,745

 

11,775

 

11,168

 

10,912

 

12,199

 

12

%

41

%

Standard & Poor’s 500

3,141

 

3,231

 

3,226

 

2,954

 

2,585

 

2,912

 

3,044

 

3,100

 

3,271

 

3,500

 

3,363

 

3,270

 

3,622

 

11

%

15

%

Client Assets (in billions of dollars) Beginning Client Assets

3,854.6

 

3,942.2

 

4,038.8

 

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

 

Net New Assets (1)

12.0

 

30.1

 

20.9

 

24.4

 

27.9

 

15.3

 

97.5

 

24.6

 

11.2

 

20.0

 

20.0

 

1,596.9

 

32.1

 

(98

%)

168

%

Net Market Gains (Losses)

75.6

 

66.5

 

(8.1

)

(213.2

)

(393.8

)

266.1

 

133.2

 

76.5

 

156.7

 

191.7

 

(114.4

)

(113.7

)

510.4

 

Total Client Assets (at month end)

3,942.2

 

4,038.8

 

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

 

9

%

63

%

Core Net New Assets (2)

12.0

 

30.1

 

20.9

 

24.4

 

27.9

 

15.3

 

17.6

 

13.7

 

2.7

 

20.0

 

20.0

 

25.6

 

32.1

 

25

%

168

%

Receiving Ongoing Advisory Services (at month end) Investor Services

330.8

 

337.1

 

336.8

 

323.2

 

291.5

 

309.9

 

339.8

 

345.2

 

355.6

 

366.8

 

361.2

 

378.8

 

406.7

 

7

%

23

%

Advisor Services (3)

1,728.2

 

1,769.7

 

1,773.2

 

1,694.0

 

1,531.3

 

1,647.9

 

1,711.7

 

1,747.5

 

1,818.5

 

1,900.5

 

1,870.1

 

2,552.0

 

2,766.1

 

8

%

60

%

Client Accounts (at month end, in thousands) Active Brokerage Accounts

12,247

 

12,333

 

12,431

 

12,521

 

12,736

 

12,866

 

14,007

 

14,107

 

14,220

 

14,311

 

14,393

 

29,013

 

29,202

 

1

%

138

%

Banking Accounts

1,384

 

1,390

 

1,403

 

1,411

 

1,426

 

1,439

 

1,448

 

1,463

 

1,480

 

1,493

 

1,486

 

1,496

 

1,504

 

1

%

9

%

Corporate Retirement Plan Participants

1,743

 

1,748

 

1,732

 

1,726

 

1,721

 

1,696

 

1,714

 

1,716

 

1,712

 

1,715

 

1,722

 

2,072

 

2,045

 

(1

%)

17

%

Client Activity New Brokerage Accounts (in thousands) (4)

127

 

164

 

167

 

159

 

283

 

201

 

1,250

 

201

 

206

 

202

 

184

 

14,718

 

430

 

(97

%)

N/M

Client Cash as a Percentage of Client Assets (5)

11.3

%

11.3

%

11.3

%

12.0

%

15.1

%

14.3

%

14.0

%

13.6

%

13.0

%

12.5

%

12.8

%

13.4

%

12.4

%

(100) bp 110 bp Derivative Trades as a Percentage of Total Trades

11.7

%

10.7

%

12.0

%

11.5

%

7.0

%

10.2

%

12.2

%

10.6

%

13.1

%

13.8

%

14.5

%

20.5

%

19.4

%

(110) bp 770 bp Mutual Fund and Exchange-Traded Fund Net Buys (Sells) (6,7) (in millions of dollars) Large Capitalization Stock

1,406

 

991

 

845

 

(178

)

984

 

(693

)

(768

)

(1,254

)

(2,536

)

(1,422

)

(1,360

)

(935

)

4,454

 

Small / Mid Capitalization Stock

73

 

201

 

(314

)

(531

)

(954

)

151

 

(401

)

(1,063

)

(1,476

)

(441

)

(497

)

(753

)

2,431

 

International

735

 

993

 

1,360

 

132

 

(2,116

)

(2,207

)

(1,953

)

(1,580

)

(773

)

230

 

370

 

168

 

2,110

 

Specialized

484

 

455

 

762

 

397

 

333

 

2,059

 

1,512

 

1,020

 

1,505

 

906

 

115

 

215

 

1,985

 

Hybrid

(290

)

(96

)

615

 

(257

)

(4,790

)

(860

)

(518

)

(97

)

(769

)

(124

)

(12

)

(553

)

(402

)

Taxable Bond

2,274

 

4,710

 

5,714

 

3,830

 

(23,142

)

1,642

 

5,469

 

9,215

 

7,314

 

7,680

 

5,734

 

5,904

 

4,825

 

Tax-Free Bond

860

 

1,255

 

1,481

 

1,066

 

(5,229

)

(242

)

805

 

1,710

 

1,297

 

1,648

 

1,123

 

861

 

1,131

 

Net Buy (Sell) Activity (in millions of dollars) Mutual Funds (6)

(761

)

1,097

 

2,684

 

(565

)

(34,382

)

(3,863

)

(564

)

1,768

 

(147

)

2,568

 

757

 

(2,260

)

2,832

 

Exchange-Traded Funds (7)

6,303

 

7,412

 

7,779

 

5,024

 

(532

)

3,713

 

4,710

 

6,183

 

4,709

 

5,909

 

4,716

 

7,167

 

13,702

 

Money Market Funds

4,768

 

1,515

 

1,911

 

1,312

 

(1,233

)

8,465

 

4,833

 

(5,673

)

(9,039

)

(5,614

)

(6,627

)

(4,021

)

(5,908

)

Selected Average Assets (in millions of dollars) Average Interest-Earning Assets (8,9)

268,254

 

274,911

 

279,437

 

278,966

 

317,850

 

353,018

 

361,814

 

373,986

 

379,521

 

384,690

 

392,784

 

442,119

 

466,677

 

6

%

74

%

Average Bank Deposit Account Assets (9,10)

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

132,030

 

162,315

 

23

%

N/M

(1)

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)

Excludes Retirement Business Services.

(4)

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.

(5)

Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets.

(6)

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.

(7)

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

(8)

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

(9)

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 Assets of $450,004 million and $157,414 million, respectively.

(10)

Represents average TD Ameritrade clients’ uninvested cash sweep account balances held in deposit accounts at third-party financial institutions. N/M - Not meaningful

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201214005143/en/

MEDIA: Mayura Hooper Charles Schwab Phone: 415-667-1525

INVESTORS/ANALYSTS: Jeff Edwards Charles Schwab Phone: 415-667-1524