Back to top

Image: Bigstock

Schwab Declines 3% as July Net New Assets Fall Sequentially

Read MoreHide Full Article

Shares of Charles Schwab (SCHW - Free Report) have declined 3% following the release of its monthly activity report for July 2019. Net new assets of $19.3 billion declined 4% from the prior month. Nonetheless, it grew 18% year over year.

Total client assets came in at $3.7 trillion, up 1% from the prior month and 8% from the year-ago month. Client assets receiving ongoing advisory services were $1.96 trillion, up 1% sequentially and 8% year over year.  

Schwab’s average interest earning assets were $264 billion at the end of July, relatively on par with June 2019 level and up 4% from July 2018. The company opened 129,000 new brokerage accounts in the reported month, up 11% sequentially and 9% year over year.

Schwab’s active brokerage accounts totaled 12 million at the end of July, relatively stable sequentially, and up 7% from the year-ago month. Further, client’s banking accounts were 1.4 million, rising 1% from June 2019 and 7% from July 2018. The number of retirement plan participants were in line with the prior-month level and up 6% year over year at 1.7 million.

Shares of Schwab have lost 15.3% over the past three months compared with 9.4% decline for the industry it belongs to.



Schwab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Investment Brokers

E*TRADE Financial’s (ETFC - Free Report) Daily Average Revenue Trades (DARTs) for July were 255,423, up 1% from the previous month and 5% year over year. Derivatives comprised 35% of DARTs in July.

Interactive Brokers Group, Inc. (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for July. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a sequential decrease in DARTs. Total client DARTs were 800,000, down 1% from the prior month.

Upcoming Release

LPL Financial Holdings (LPLA - Free Report) is likely to report monthly activity for July soon.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>