Charles Schwab Q2 ETF Assets Jump 26% as Markets Rise
- ETF assets under management increased to $439.7B.
- Schwab grabbed 1M new brokerage accounts that brought in $80.3B.
- SCHD brought in $1.8B.
Charles Schwab Corp. (SCHW), the fifth-largest U.S. ETF issuer, said assets in its exchange-traded funds rose 26% during the second quarter, compared with the year-earlier period, as stock markets gained and investors picked up shares of the company’s funds.
Total ETF assets in the company’s proprietary exchange-traded funds jumped to $439.7 billion, the Westlake, Texas-based company said in a press statement. On a quarter-over-quarter basis, assets rose 11% to $398.2 billion. Schwab manages 34 ETFs, according to FactSet.
The company’s ETF assets swelled on a mix of market gains and inflows and thanks to one million new brokerage accounts that pulled in $80.3 billion.
The S&P 500, as measured by the Vanguard S&P 500 ETF Trust (VOO), gained 11% during the quarter, pulling out of a brief bear market sparked by President Donald Trump’s tariff wars and rallying on computing, artificial intelligence and mining companies.
SCHD, SCHX Pull in Investor Cash
At the same time, investors poured billions into Schwab’s equity and other funds. Its largest, the $70.3 billion Schwab US Dividend Equity ETF (SCHD), pulled in $1.8 billion, nearly seven times the amount during last year’s second quarter but about half as much as the first quarter's $3.8 billion.
It’s No. 2 fund, the $56.6 billion Schwab U.S. Large-Cap ETF (SCHX), had net inflows of $559.7 million during the second quarter.
The company didn't provide total flows into its proprietary ETFs for the quarter in its release, though etf.com has requested the information.
Schwab's 5 Largest ETFs
Ticker | Fund Name | AUM | Expense Ratio | Three-Month Total Return | Segment |
Schwab US Dividend Equity ETF | $70.3B | 0.06% | 7.8% | Equity: U.S. - High Dividend Yield | |
Schwab U.S. Large-Cap ETF | $56.6B | 0.03% | 20.1% | Equity: U.S. - Large Cap | |
Schwab International Equity ETF | $48.2B | 0.03% | 12.3% | Equity: Developed Markets Ex-U.S. - Total Market | |
Schwab U.S. Large-Cap Growth ETF | $45.1B | 0.04% | 25.6% | Equity: U.S. - Large Cap Growth | |
Schwab U.S. Broad Market ETF | $34.7B | 0.03% | 20.2% | Equity: U.S. - Total Market |
Source: etf.com & FactSet data
Rising Markets Boost ETF Issuers
Second-quarter market gains boosted other ETF issuers as well. The largest, Blackrock Inc. (BLK), said this week that its iShares ETF franchise attracted $85 billion in net flows during the second quarter and ETF assets under management reached $4.7 trillion.
State Street Corp. (STT), the No. 3 issuer, said earlier this week that second-quarter ETF inflows more than doubled to $15 billion year over year.
Schwab’s shares jumped as much as 4.7% on Friday to an intraday record of $97.50. It reported adjusted earnings per share of $1.14, beating estimates of $1.10, according to Barron’s.
U.S. ETF flows fell 15% during the second quarter to $247 billion from $291 billion in the first, State Street said in its earnings statement. On a year-over-year basis, they jumped 20% from a $206 billion basis.
