Net new assets surged at Charles Schwab in the second quarter, propelling the brokerage's total for client holdings past the $13 trillion mark.
Westlake, Texas-based Schwab reported Tuesday that its inflows of "core net new assets" were up nearly 50% year over year to nearly $120 billion in the second quarter. Schwab defines core new assets as inflows coming from new or existing clients but not from acquisitions or large one-time transfers from external institutions.
Flows into the firm's managed accounts, including those in its Schwab Wealth Advisory and Schwab Advisor Network, were up by 50% year over year to $41 billion in the first half of 2026. Outside RIAs that work with Schwab,
In an earnings call Tuesday, Schwab President and CEO Rick Wurster offered assurances that there is more than enough wealth for everyone to manage. Internal polling has suggested that nearly a third of the firm's clients say they would pay for financial advice.
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With $37 million out there, what's there to compete for?
Wurster said there is $37 trillion in the U.S.
"Just 5% of Schwab retail households are in a fee-based advice solution," Wurster said. "Thirty-one percent of Schwab clients said they are willing to pay for advice. Our opportunity to close this gap is a win-win for clients and Schwab."
The firm's net inflows helped push its total for client assets up by 22% year over year to $13.08 trillion in the second quarter. Schwab reported that investors opened 1.4 million brokerage accounts in the quarter, bringing the total up 6% to just over 39.8 million at the end of June.
Altogether, Schwab clients made an average of 11.9 million trades a day in the second quarter, a record for the firm. Revenue from such trades rose by 28% to $1.2 billion.
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An AI lift for brokerage trading
Wurster has noted on several occasions how Schwab is using AI systems to provide advisory services to clients with relatively small asset totals. Clients previously needed at least $1 million
Wurster suggested in the Tuesday earnings call that AI is also encouraging clients to invest on their own through self-directed brokerage accounts.
"I think AI is absolutely a benefactor in our trading levels and will continue to drive trading as people use AI to both do research on how to position themselves and how to invest, as well as use AI in more of an algorithmic fashion to drive some of their trading," Wurster said.
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Net income, revenue and expenses
Of the firm's total client assets, $5.74 trillion was held in its Schwab Advisor Services division, which acts as a custodian safeguarding client holdings and provides other types of support to outside RIAs. Just over $7.34 trillion was in the firm's investor services division, which offers self-directed brokerage accounts and other services directly to investors.
The firm's net income was up by 32% to $2.8 billion as its net revenue increased by 21% to just over $7 billion. The firm's biggest revenue contributor, net interest, rose by 17% to $4.43 billion. Fee revenue from managing and administering assets was up by 16% to $1.83 billion.
The firm's expenses were up by nearly 12% to $3.4 billion. The biggest cost line item — compensation and benefits — was up by nearly 17% to $1.79 billion.
Clients and RIAs both want long-short strategies
Wurster noted that one driver of the firm's net interest revenue was clients' interest in a tax-saving
With the stock market on a bull run for more than three years now, investors and advisors both are looking for ways to cash in on investment gains without incurring large tax bills. Wurster said Schwab has done much more than its competitors to make long-short strategies accessible.
"I think it's a strategy that makes a lot of sense for clients, particularly those that have sold [their] business or
