Close
ThinkAdvisor

Industry Spotlight > RIAs

Schwab Assets Up 84% After Stock Surge, TD Ameritrade Deal

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • Assets at RIAs who custody with Schwab stood at $3.15 trillion as of May 31 vs. $1.72 trillion a year ago.
  • Total client assets were about $7.4 trillion as of May 31.
  • ETF flows slowed significantly from April.

Charles Schwab said its total client assets were about $7.4 trillion as of May 31, up 84% from roughly $3.8 trillion a year earlier and up 1% from $7.3 trillion as of April 30.

These jumps are partly tied to Schwab adding roughly $1.5 trillion in assets when it completed its $22 billion purchase of TD Ameritrade in October. They also benefited from positive growth in the equity markets. The Dow Jones Industrial Average rose 2% in May, for instance, and is up 36% for the past 12 months.

Schwab’s net new assets in May, excluding mutual fund clearing, were close to $28.1 billion vs. $37.2 billion in April and $17.6 billion in May 2020.

Its average interest-earning assets totaled $528.6 billion in May — up 46% from May 2020 and flat compared with April 2021.

As for Advisor Services assets at RIAs who custody with Schwab, they stood at $3.15 trillion as of May 31 vs. $3.11 trillion in April and $1.72 trillion a year ago.

As for overall investor trends, equity purchases totaled $9.9 billion in May vs $13.4 billion in April. A year earlier, equity sales were $1.6 billion for the month.

Bond purchases in May 2021 were $5.9 billion vs. $8.9 billion in April and $6.3 billion a year earlier.

Investors gobbled up about $2 billion in ETFs in May, way down from $5.8 billion in April and $4.7 billion in May 2020.

— Check out Schwab-TD Ameritrade Integration Costs Higher Than Expected on ThinkAdvisor.