ETF Assets Custodied at Schwab Rise Again

ETF Trends

Discount brokerage giant Charles Schwab (SCHW) continues to see growth in exchange traded fund assets custodied at the firm. The California-based firm finished the first quarter with $203 billion in ETF assets in custody, up 21% from a year earlier.

First-quarter ETF flows were $4.8 billion, with nearly 60% going into U.S. Fixed Income. Equity ETFs represented just 25% of flows in the first quarter, with a two-thirds, one-third split between Domestic and International Equities, respectively ,” said Schwab in its quarterly snapshot released Friday.

In 2013, ETF assets custodied at Schwab surged 29% to $196 billion compared with industry growth of 26%. At the end of the third quarter, ETF assets custodied at Schwab reached $179 billion. [Schwab Keeps Gaining ETF Assets]

The solid inflows to bond ETFs seen at Charles Scwhab in the first quarter are representative of what was seen in the broader industry. Jittery investors poured cash into bond ETFs in the first two months of the year, but some of the money was withdrawn last month on fears the Federal Reserve will raise interest rates sooner than expected. [ETF Inflows Perk Up]

Sector funds remain popular with Schwab clients, representing 20% of the firm’s first-quarter flows, nearly triple the level seen a year earlier. Financial services, health care and technology sector ETFs remained popular with Schwab clients while the firm also noted an uptick in flows to real estate investment trust ETFs.  [REIT ETFs Rebound]

Schwab issues 21 of its own ETFs, including the Schwab US Dividend Equity ETF (SCHD) , Schwab Emerging Markets Equity ETF (SCHE) and the Schwab U.S. Broad Market ETF (SCHB) .

 

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Chart Courtesy: Charles Schwab

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of SCHD.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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