New Asset Growth
Schwab attracted $138 billion in new assets, an increase of 44% year-over-year, with $59 billion gathered in March alone. Brokerage account openings increased by 8% to 1.2 million, raising total accounts to 37 million, while client assets grew 9% to $9.93 trillion.
Money market fund assets soared by 24% to $621.5 billion, and stock and bond fund assets rose 22% to $658 billion. Managed investing solutions experienced a 15% growth, reaching $711 billion in assets. Schwab also increased its dividend by 8% to 27 cents per share. The stock grew approximately 2% recently and has a year-to-date return of about 5%. Analyst projections suggest a 14% rise with a median price target of $88 per share.
What we’re seeing here is a clear reflection of how well Schwab adapted to recent market conditions. The firm posted an 18% rise in revenue compared to this time last year, reaching $5.6 billion, which edged above consensus figures. A closer look at the bottom line shows net income leapt to $1.9 billion, a full 40% increase. Adjusted earnings per share moved up to $1.04, ahead of expectations. None of that is happening in a vacuum—it’s the consequence of precise positioning amid high activity levels in the market.
The notable jump in trading-related income, up 11%, ties directly to increased trading volumes, which were no doubt spurred by volatility. As market movements intensified, clients appeared more willing to take positions or adjust existing holdings. This uptick in participation tends to amplify order flows, which, in turn, boosts trading revenues. That’s exactly what we observed here.
Strong Client Engagement
Fee income from asset management grew by $180 million over the prior year, hitting $1.5 billion. That’s particularly striking given that equity markets have not exactly delivered smooth sailing. It suggests that client retention was strong, and that asset flows didn’t just stay put—they accelerated. For any strategy relying on steady inflows, this is encouraging. We look at the $138 billion in net new client assets—with $59 billion arriving in one month alone—as reflective of trust in the platform and its advisory services.
The client base isn’t shrinking, either. There were 1.2 million new account openings, lifting total accounts to 37 million. It reinforces that scale remains hardware, not just brand. Even more revealing is the growth in managed investment solutions, which now sit at $711 billion. That sort of move, up 15%, shows a migration, gradual but constant, from individual trading to discretionary and semi-discretionary models. Investment managers will need to observe how this influences demand for hedging versus outright speculative positions.
We noted strong growth in money market assets too—those are up 24%. It’s not hard to see why clients would seek yield in those instruments given recent rate environments. That move often reflects heightened concern for capital preservation, without moving entirely out of market-linked instruments. Stock and bond fund assets also gained by 22%, rounding out a fairly comprehensive increase in instruments that occupy a more passive end of the spectrum.
Schwab’s decision to increase its dividend to 27 cents per share shows more than just confidence in cash flows. It signals a willingness to return capital, a move that implies internal projections remain firmly positive. The market rewarded the results with a 2% lift in share price recently, and the stock’s up around 5% year-to-date—healthy, not frantic. A median price forecast of $88 would suggest expectations for another 14% climb.
For those of us interpreting implied volatility and short-dated skew, this data suggests that directional flows could be more stable than initially assumed entering Q2. With cash moving into managed accounts and money market funds, longer-duration risk may be temporarily sidelined. That shift can impact volume and open interest in OTC and listed derivatives—particularly those tied to large-cap indices or sector ETFs. Watch the spread compression.
This report paints a picture of engaged clients who are not retreating into inactivity, but neither are they leaning entirely into high-risk assets. That may mean a shift in volume distribution, perhaps less intense in speculative pockets, with more flow through structured products or option overlays. Expect institutional strategies to balance exposure between income generation and moderate directional bets. Timing windows may tighten.
