Money Market Flows

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Charles Schwab Corp., a leading financial services company, witnessed a significant shift in its customers’ investment preferences during the third quarter. Investors flocked to exchange-traded funds (ETFs), while traditional mutual funds experienced outflows. By the end of the quarter, Schwab’s ETF assets swelled to a staggering $1.6 trillion, marking a 24% increase year-over-year. This growth was propelled by a 20% surge in the market, as reflected by the benchmark SPDR S&P 500 ETF Trust (SPY). In stark contrast, Schwab’s mutual funds, excluding money-market funds, saw a withdrawal of $16 billion.

ETF Newz Says:

The data reveals a broader trend in investment behavior. Schwab investors injected $31 billion into ETFs in the third quarter, a slight dip from the $36 billion inflow during the same period last year. On the other hand, mutual fund outflows were halved from the previous year’s third quarter, standing at $31 billion. Interestingly, both inflows and outflows remained consistent from the second quarter of 2023. Among Schwab’s proprietary ETFs, the Schwab U.S. Dividend Equity ETF (SCHD) and the Schwab International ETF (SCHF) emerged as the top choices, attracting $1.2 billion and $582 million, respectively.


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