Wednesday, June 29 2022


WESTLAKE, Texas – (BUSINESS WIRE) – November 15, 2021–

According to Charles Schwab SDBA Indicators Report, a leading benchmark on the investment activity of pension plan participants in self-directed brokerage accounts (SDBAs), the average account balance of all participant accounts ended the third quarter of 2021 at $ 341,068 , an increase of 12.8% year-over-year and a decrease of 2.0% from the second quarter of 2021.

SDBAs are brokerage accounts within retirement plans, including 401 (k) plans and other types of retirement plans, that participants can use to invest their retirement savings in individual stocks and bonds. , as well as in exchange traded funds, mutual funds and other securities that are not part of the core investment offerings of their retirement plan.

The third quarter SDBA indicators report showed overall stable investment behavior among participants. Transaction volumes were similar to transactions a year ago and slightly lower than last quarter, averaging 13.1 transactions per account compared to 13.8 in the second quarter.

Participants’ holdings also remained similar in the previous quarter, with a slight increase in cash holdings. The highest allocation of participants’ assets was in equities (36%). Mutual funds were second (30%), followed by ETFs (20%), cash (13%) and fixed income (1%).

Allocation trends

The data also reveals specific asset classes and sector holdings within each investment category:

  • Mutual funds: Large-cap funds had the largest allocation with about 34% of all mutual fund allocations, followed by taxable (19%) and international (15%) bond funds.
  • Equities: The largest position in the equities sector was Information Technology at 29.8%, up slightly from 29.3% in the previous quarter. The top five holdings of equities remained the same as in the previous quarter. Apple was the first overall equity stake, accounting for 10.6% of the portfolios’ equity allocation. Other top five holdings include Tesla (6.9%), Amazon (4.9%), Microsoft (2.9%) and NVIDIA (2.0%).
  • ETFs: Among ETFs, investors continued to allocate the most dollars to U.S. equities (50%), followed by sector ETFs (14%), U.S. fixed income (14%), and international equities (13 %).

Other highlights from the report

  • Advised accounts held higher average account balances than unadvised accounts – $ 542,365 versus $ 294,215.
  • Gen X had the most advisable accounts at around 49%, followed by Baby Boomers (35%) and Generation Y (14%).
  • Gen X made up about 45% of SDBA participants, followed by baby boomers (31%) and millennials (18%).
  • Baby boomers had the highest SDBA balances with an average of $ 526,193, followed by Gen X at $ 301,686 and Gen Y at $ 101,670.
  • On average, participants held 12.4 positions in their SDBAs at the end of Q3 2021, consistent with Q2 2021.

About the SDBA Metrics Report

The SDBA Indicators Report includes data collected from approximately 176,000 pension plan members who currently have balances between $ 5,000 and $ 10 million in their retirement plan. Schwab® personal choice retirement account. Data are extracted quarterly on all accounts opened at the end of the quarter and meeting the balance criteria.

The SDBA Indicators report tracks a wide variety of investment activity and profile information about participants with a Schwab Personal Choice Retirement Account (PCRA), ranging from asset allocation trends and asset flows in various classes of stocks, exchange-traded funds and mutual funds, at age. trends and business activity. The SDBA Indicators report provides an overview of PCRA users’ perceptions of the markets and the investment decisions they make.

The data in this quarterly report is from the third quarter of 2021 and can be viewed here, as well as previous reports.

About Charles Schwab

At Charles Schwab, we believe in the power to invest to help people create a better future. We’re used to challenging the status quo in our industry, innovating in ways that benefit the investors, advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.aboutschwab.com. follow us on Twitter, Facebook, Youtube and LinkedIn.

Disclosures:

Brokerage products: not FDIC insured • No bank guarantee • May lose value

The securities indicated are for informational purposes only and do not constitute a recommendation to trade on any security.

Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, fund management and financial advisory services to individual investors and investment advisers. independent. Its brokerage subsidiary, Charles Schwab & Co., Inc. ( SIPC member, www.sipc.org ), and affiliates offer a full range of investment services and products, including a wide selection of mutual funds; financial planning and investment advice; pension plan and stock compensation plan services; business monitoring and compliance solutions; referrals to independent paid investment advisers; and custody, operations and trading support for independent and remunerated investment advisers through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member of the FDIC and Equal Housing Lender), offers banking and credit services and products. More information is available at www.schwab.com and www.aboutschwab.com.

This report is for informational purposes only and is not a solicitation or recommendation that a particular investor should buy or sell any particular security.

Schwab Personal Choice Retirement Account® (PCRA) is offered by Charles Schwab & Co., Inc. (SIPC Member), the registered broker / dealer, who also provides other brokerage and custody services to its clients.

All company names are provided for information purposes only and do not constitute a recommendation, an offer to sell or a solicitation of an offer to buy securities.

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View source version on businesswire.com:https://www.businesswire.com/news/home/20211115005046/en/

CONTACT: Mike Peterson

Charles Schwab

330-908-4334

[email protected]

Carly taylor

The Neibart group

718-801-8206

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: PROFESSIONAL SERVICES OTHER CONSUMERS CONSUMERS HUMAN RESOURCES FINANCING CONSULTING BANKING

SOURCE: The Charles Schwab company

Copyright Business Wire 2021.

PUB: 11/15/2021 9:00 a.m. / DISC: 11/15/2021 9:01 a.m.

http://www.businesswire.com/news/home/20211115005046/en

Copyright Business Wire 2021.



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