Schwab nets $120B in Q2, sees $37T RIA opportunity

Charles Schwab reported nearly $120 billion in core net new assets in the second quarter, lifting client assets to $13.08 trillion. The firm defines core net new assets as inflows from new or existing clients excluding acquisitions and large one-time transfers. Flows into Schwab’s managed accounts, including Schwab Wealth Advisory and the Schwab Advisor Network, totaled $41 billion in the first half of 2026, up 50% year over year.

On the company’s earnings call, CEO Rick Wurster said roughly $37 trillion of U.S. wealth could be directly managed by independent registered investment advisers for fees. He noted that just 5% of Schwab retail households are in a fee-based advice solution while internal polling showed 31% of clients would pay for financial advice.

Investors opened 1.4 million brokerage accounts in the quarter, bringing the total to just under 39.8 million at the end of June, a 6% increase from a year earlier. Schwab clients averaged a record 11.9 million trades a day in Q2, and revenue tied to trading rose 28% to $1.2 billion.

Net income rose 32% to $2.8 billion and net revenue increased 21% to just over $7 billion. Net interest income climbed 17% to $4.43 billion, and fee revenue from managing and administering assets grew 16% to $1.83 billion. Expenses were up nearly 12% to $3.4 billion, with compensation and benefits at $1.79 billion, an increase of about 17%.

Client assets were split between $5.74 trillion in Schwab Advisor Services, which provides custody and support to outside RIAs, and $7.34 trillion in the investor services division for self-directed customers.

Wurster pointed to two trends driving client activity. He described the firm’s use of artificial intelligence to expand advisory access for clients with smaller balances and to help clients research investments and execute trades. “I think AI is absolutely a benefactor in our trading levels,” Wurster said on the call.

He also highlighted growing interest in long-short strategies, which can generate losses to offset capital gains and reduce tax bills while maintaining market exposure. Wurster said Schwab has made long-short approaches more accessible than competitors and expects the strategy to broaden over the next five to ten years. “Being able to generate and harvest losses against that while still largely tracking an index — it’s quite a powerful strategy,” he said.

Outside RIAs have raised concerns that Schwab’s in-house advisors and financial consultants compete with the firm’s custody clients. Wurster sought to reassure those partners on the earnings call, saying there is sufficient client wealth to be managed across both Schwab’s advisory operations and independent RIAs.