Charles Schwab Total Client Assets Increase 21% YoY in October

Charles Schwab reported that total client assets jumped 21% year over year in October, coming in at a record $3.26 trillion.

In a press release announcing monthly activity highlights, the San Francisco-based discount broker said that total client assets of $3.26 trillion in October were up 2% from September. Net new assets came in at $35.4 billion for October, while client assets receiving ongoing advisory services also set a record at $1.64 trillion, up 21% from a year ago and 2% compared with September. Shares of The Charles Schwab Corporation (SCHW) were recently trading down $0.31, or 0.7%, to $44.29.

For its third quarter, Schwab reported that it opened 216,000 new retail brokerage accounts, up 29% from a year ago, with total client assets increasing 17% to $3.18 trillion. Core net new assets jumped 72% to $51.6 billion. Earnings per share for the three months ending in September came in at $0.42, and revenue was $2.165 billion. According to Zacks Investment Research, analysts had expected the brokerage firm to report earnings of $0.41 per share and revenue of $2.9 billion. Had Schwab delivered on the revenue front, it would have represented a 14% year-over-year increase.

For Charles Schwab, the monthly activity for October isn't the only record it has set in recent weeks. According to ETF Trends, Charles Schwab had exchange-traded fund (ETF) assets of $380 billion at the end of September, up from $292 billion in the same period a year ago, which marks a 30% year-over-year increase. Schwab's registered investment advisor clients had ETF assets of $201 billion in September, up 31% from the $154 billion at the end of September 2016, representing the largest jump in demand from a year-ago period. Retail investors' ETF assets jumped 27% to $132 billion from $104 billion, while retail traders' ETF assets increased 37% to $47 billion from $34 billion, noted ETF Trends.

The increase in investments going into ETFs comes at a time when Charles Schwab is trying to make more inroads on that side of its business. In October, Schwab announced a new ETF that takes aim at BlackRock, Vanguard and State Street thanks to a lower expense ratio.