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SCHW Client Assets Hit $13.41T in August: Will the Momentum Continue?
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Key Takeaways
Schwab's core net new assets rose 46% year over year to a record $64.8B in August.
Client assets reached $13.41 trillion, while brokerage accounts and daily average trades continued to grow.
Rising expenses and low-cost, AI-enabled fintech competition could challenge Schwab's growth momentum.
The Charles Schwab Corporation (SCHW - Free Report) reported strong client activity for August 2026, with total client assets reaching $13.41 trillion, up 19% year over year. This was largely driven by core net new assets (NNA) of $64.8 billion, which surged 46% year over year.
The strong asset-gathering momentum was accompanied by continued growth in client accounts. Schwab opened 424,000 new brokerage accounts during August, up 11% year over year, while active brokerage accounts rose 6% to 40.1 million. Banking accounts increased 13% to 2.4 million, and workplace plan participant accounts grew 5% to 5.9 million.
Schwab’s Client Activity and Asset Growth Remain Strong
Client engagement remained robust during August. Client daily average trades reached 9.8 million, up 37% year over year, while margin balances soared 92% from the prior-year month to $177.6 billion. Transactional sweep cash was up 19% from the prior-year month to $483.3 billion, while total money market fund balances reached $702.5 billion, up 6% year over year.
The increase in client assets and engagement builds on Schwab’s expansion of its wealth platform. Managed investing solutions revenues grew at an 11.1% compound annual growth rate (CAGR) during 2020-2025, while total client assets increased at a 12.2% CAGR over the same period. Strategic acquisitions, including TD Ameritrade, USAA IMCO, Wasmer Schroeder, Motif and Forge, have broadened the company’s distribution and product capabilities across retail, independent registered investment advisors and private markets. Continued investment in financial consultants, wealth advisers and branches is expected to further support client acquisition and asset gathering.
Schwab’s interest-rate-sensitive earnings profile also remains an important growth driver. Net interest revenues (NIR) increased at a 14% CAGR during 2020-2025, while net interest margin (NIM) rose to 2.74% in 2025 from 2.12% in 2024. Management’s latest 2026 scenario calls for full-year NIM of 3.00%-3.10% and fourth-quarter NIM of 3.25%-3.30%. Lower-cost funding and higher interest-earning asset balances could therefore provide additional support to NIR, with the average interest-earning assets balance reaching $453 billion at the end of August, up 9% from the prior-year month.
Our Take on Schwab
The August activity report highlights broad-based strength across Schwab’s client franchise, with record core net new assets, higher client assets, new account growth, and strong trading and margin activity. The company’s expanding wealth platform and continued NIM improvement provide additional avenues for revenue growth.
However, Schwab’s 2026 adjusted expenses are expected to rise 9.5-10.5% year over year as it continues investing in technology, advisor coverage, branches, and new products. Competitive pressure from low-cost, AI-enabled fintech offerings also remains a headwind. Overall, sustaining strong asset gathering and client engagement while controlling the pace of expense growth will be key to maintaining profitability at Schwab.
Over the past six months, Schwab shares have gained 12.7%, underperforming the industry’s 22.8% growth
Robinhood Markets, Inc. (HOOD - Free Report) has witnessed strong growth across its platform, with total platform assets climbing to $384 billion as of Aug. 31, 2026, up 26% year over year. Net deposits remained robust at $4.0 billion for the month, a 14% annualized growth rate. Platform scale continued to expand alongside client assets, as funded customers increased 7.1% year over year to reach 28.6 million.
Strategic expansion into institutional crypto, wealth advisory, and international markets, facilitated by the integration of Bitstamp, TradePMR, and WonderFi, along with product additions like event contracts and the custody of Trump Accounts, has broadened HOOD’s asset base and trading ecosystem. In August 2026, engagement across these initiatives was underscored by $335 billion in equity notional volume, up 68% year over year; 293 million options contracts traded, up 50%; and 4.7 billion event contracts traded, up fifteen-fold, positioning the company for continued asset gathering and revenue momentum.
Interactive Brokers Group, Inc. (IBKR - Free Report) has witnessed strong client asset and balance growth, with ending client equity reaching $962.8 billion as of Aug. 31, 2026, up 35% year over year. Growth remained broad-based during the month, as client margin loan balances expanded 41% from the prior-year period to $101.5 billion, while client credit balances rose 27% to $185.6 billion. Client adoption continued its rapid pace, with active accounts climbing 35% year over year to 5.460 million.
Client engagement and trading velocity remained robust across global asset classes, supported by 4.3 million Daily Average Revenue Trades in August, a 23% increase year over year. Ongoing expansion across global market venues and automated electronic execution are expected to further support trading momentum and long-term account acquisition at Interactive Brokers.
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SCHW Client Assets Hit $13.41T in August: Will the Momentum Continue?
Key Takeaways
The Charles Schwab Corporation (SCHW - Free Report) reported strong client activity for August 2026, with total client assets reaching $13.41 trillion, up 19% year over year. This was largely driven by core net new assets (NNA) of $64.8 billion, which surged 46% year over year.
The strong asset-gathering momentum was accompanied by continued growth in client accounts. Schwab opened 424,000 new brokerage accounts during August, up 11% year over year, while active brokerage accounts rose 6% to 40.1 million. Banking accounts increased 13% to 2.4 million, and workplace plan participant accounts grew 5% to 5.9 million.
Schwab’s Client Activity and Asset Growth Remain Strong
Client engagement remained robust during August. Client daily average trades reached 9.8 million, up 37% year over year, while margin balances soared 92% from the prior-year month to $177.6 billion. Transactional sweep cash was up 19% from the prior-year month to $483.3 billion, while total money market fund balances reached $702.5 billion, up 6% year over year.
The increase in client assets and engagement builds on Schwab’s expansion of its wealth platform. Managed investing solutions revenues grew at an 11.1% compound annual growth rate (CAGR) during 2020-2025, while total client assets increased at a 12.2% CAGR over the same period. Strategic acquisitions, including TD Ameritrade, USAA IMCO, Wasmer Schroeder, Motif and Forge, have broadened the company’s distribution and product capabilities across retail, independent registered investment advisors and private markets. Continued investment in financial consultants, wealth advisers and branches is expected to further support client acquisition and asset gathering.
Schwab’s interest-rate-sensitive earnings profile also remains an important growth driver. Net interest revenues (NIR) increased at a 14% CAGR during 2020-2025, while net interest margin (NIM) rose to 2.74% in 2025 from 2.12% in 2024. Management’s latest 2026 scenario calls for full-year NIM of 3.00%-3.10% and fourth-quarter NIM of 3.25%-3.30%. Lower-cost funding and higher interest-earning asset balances could therefore provide additional support to NIR, with the average interest-earning assets balance reaching $453 billion at the end of August, up 9% from the prior-year month.
Our Take on Schwab
The August activity report highlights broad-based strength across Schwab’s client franchise, with record core net new assets, higher client assets, new account growth, and strong trading and margin activity. The company’s expanding wealth platform and continued NIM improvement provide additional avenues for revenue growth.
However, Schwab’s 2026 adjusted expenses are expected to rise 9.5-10.5% year over year as it continues investing in technology, advisor coverage, branches, and new products. Competitive pressure from low-cost, AI-enabled fintech offerings also remains a headwind. Overall, sustaining strong asset gathering and client engagement while controlling the pace of expense growth will be key to maintaining profitability at Schwab.
Over the past six months, Schwab shares have gained 12.7%, underperforming the industry’s 22.8% growth
6-Month Price Performance
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Monthly Performance of Schwab’s Peers
Robinhood Markets, Inc. (HOOD - Free Report) has witnessed strong growth across its platform, with total platform assets climbing to $384 billion as of Aug. 31, 2026, up 26% year over year. Net deposits remained robust at $4.0 billion for the month, a 14% annualized growth rate. Platform scale continued to expand alongside client assets, as funded customers increased 7.1% year over year to reach 28.6 million.
Strategic expansion into institutional crypto, wealth advisory, and international markets, facilitated by the integration of Bitstamp, TradePMR, and WonderFi, along with product additions like event contracts and the custody of Trump Accounts, has broadened HOOD’s asset base and trading ecosystem. In August 2026, engagement across these initiatives was underscored by $335 billion in equity notional volume, up 68% year over year; 293 million options contracts traded, up 50%; and 4.7 billion event contracts traded, up fifteen-fold, positioning the company for continued asset gathering and revenue momentum.
Interactive Brokers Group, Inc. (IBKR - Free Report) has witnessed strong client asset and balance growth, with ending client equity reaching $962.8 billion as of Aug. 31, 2026, up 35% year over year. Growth remained broad-based during the month, as client margin loan balances expanded 41% from the prior-year period to $101.5 billion, while client credit balances rose 27% to $185.6 billion. Client adoption continued its rapid pace, with active accounts climbing 35% year over year to 5.460 million.
Client engagement and trading velocity remained robust across global asset classes, supported by 4.3 million Daily Average Revenue Trades in August, a 23% increase year over year. Ongoing expansion across global market venues and automated electronic execution are expected to further support trading momentum and long-term account acquisition at Interactive Brokers.