- Charles Schwab reported a 16% year-over-year increase in ETF assets, reaching $398.2 billion, driven by strong inflows into its largest funds despite a challenging market environment. The Schwab US Dividend Equity ETF (SCHD) attracted $3.8 billion, reflecting a shift towards safer investments as the S&P 500 faced a 10% decline in 2025 due to recession fears and inflation concerns.
- While Schwab's overall ETF inflows decreased by 17% from the previous quarter, the company still saw a significant year-over-year increase in net purchases. The broader U.S. ETF industry experienced a 32% drop in inflows compared to the last quarter, indicating a cautious investor sentiment amid economic uncertainties.
Why it matters
Schwab's growth in ETF assets highlights its resilience and adaptability in a volatile market, positioning it favorably against competitors.