Schwab ETF Assets Up 30% Year on Year

Equity funds take bulk of flows in April–June period

A Charles Schwab branch. (Photo: AP) A Charles Schwab branch. (Photo: AP)

Charles Schwab’s second quarter ETF Investor Snapshot, released Tuesday, reported that exchange-traded-fund assets custodied at the firm at the end of June reached $217 billion, a 30% increase over June 2013.

According to the report, second quarter ETF flows amounted to $5.2 billion, up 9% from the first quarter.

Equity funds represented 70% of the flows, well up from 25% in the first three months of the year. Of this, 39% went to U.S. equity and 31% to international equity.

Fixed income accounted for just 4% of ETF flows in the second quarter, a big drop from the previous quarter, which the report ascribed to large outflows from short-term bond funds.

The ETF Investor Shapshot is based on analysis of ETFs on the Charles Schwab platform, regardless of ETF or distributor.

The report said retail traders enrolled in Schwab Trading Services captured 11% of the ETF flows in the July 2013 to June 2014 period, up from just 6% in the previous year.

However, retail investors’ share of the flows fell to 43% from 47% in the same period.

RIA clients also saw their share of flows fall slightly, to 46% from 47% a year earlier.

 

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