Fidelity Still Gaining on Schwab

To get a market-appreciation-adjusted figure that indicates how the two big custodians are faring, assume that the typical advisor portfolio held at Schwab and Fidelity consists of 75% stocks and 25% bonds. Since July 1, 2003, a blended portfolio with 75% in stocks as measured by the Russell 3000 and 25% in bonds as measured by the Lehman Bros. Aggregate Bond Index showed a total return of 18.4%. Thus, of the $112 billion increase in advisor assets at Schwab since June 30, 2003, we can assume that about $43 billion came from market appreciation, giving Schwab net new assets of $69 billion. Meanwhile, at Fidelity, of the $61 billion increase in advisor assets, about $13 billion came from market appreciation, giving Fidelity a new asset figure of $48 billion. So Fidelity garnered about 70% of the assets Schwab did in this period.

Fidelity’s share of the RIA market versus Schwab is much bigger now than it was in the late 1990s, and it appears Fidelity’s momentum has held up in recent months.