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LPL Financial (LPLA) November Brokerage & Advisory Assets Dip Q/Q

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LPL Financial Holdings Inc.’s (LPLA - Free Report) total brokerage and advisory assets were $1.17 trillion at the end of November 2021. It declined almost 1% from the prior month but surged 34.1% year over year. Of the total assets, brokerage assets were $550.7 billion and advisory assets totaled $620.1 billion.

The decrease in LPLA’s assets balance was mainly due to the volatile equity markets.

LPL Financial’s total net new assets were $6.9 billion in the reported month. Net new assets were $7.2 billion and $7.4 billion in October 2021 and November 2020, respectively.

Also, LPL Financial reported $51.9 billion of total client cash balance, up 2% from October 2021 and 7.9% from November 2020. Of the total balance, $29.9 billion was insured cash and $8.5 billion was deposit cash, while the remaining was money-market balance.

LPL Financial’s recruiting efforts and solid advisor productivity will continue aiding advisory revenues. Also, it is expanding through strategic buyouts, given a solid balance sheet position. However, volatility in equity markets and rising costs are concerns.

Shares of LPL Financial have rallied 20% over the past six months, outperforming 6.7% growth recorded by the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Brokerage Firms

Some of the other brokerage firms that come out with monthly data are Interactive Brokers Group (IBKR - Free Report) , Tradeweb Markets Inc. (TW - Free Report) and Charles Schwab (SCHW - Free Report) .

Interactive Brokers’ Electronic Brokerage segment announced performance metrics for November 2021. The segment (that deals with the clearance and settlement of trades for individual and institutional clients globally) reported a surge in client Daily Average Revenue Trades (DARTs) both on a year-over-year and a sequential basis.

IBKR’s total client DARTs were 2,793,000, which grew 22% from November 2020 and 21% from October 2021.

Tradeweb Markets reported total trading volume of $24.2 trillion in November 2021. Average daily volumes (ADV) were $1.18 trillion, up 22.6% year over year.

Lee Olesky, the CEO of Tradeweb Markets, stated, “November was Tradeweb’s second-busiest month ever, extending our run of more than 12 consecutive months reporting year-over-year ADV growth.”

Schwab’s total client assets were $7.92 trillion in November 2021, down 1% from October 2021 but up 23% from November 2020. Client assets receiving ongoing advisory services were $3.92 trillion, down 1% from the prior month but up 23% year over year.

Additionally, Schwab’s core net new assets were $45.1 billion in the reported month. This reflected a rise of 23% from the previous month and 40% year over year.