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Sonim Technologies (NASDAQ:SONM – Get Free Report) and Charles Schwab (NYSE:SCHW – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability This table compares Sonim Technologies and Charles Schwab’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Sonim Technologies N/A N/A -40.82% Charles Schwab 38.79% 24.53% 2.14% Insider and Institutional Ownership 3.3% of Sonim Technologies shares are held by institutional investors. Comparatively, 84.4% of Charles Schwab shares are held by institutional investors. 4.6% of Sonim Technologies shares are held by insiders. Comparatively, 6.3% of Charles Schwab shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings This is a breakdown of current ratings and target prices for Sonim Technologies and Charles Schwab, as provided by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Sonim Technologies 1 0 0 0 1.00 Charles Schwab 1 2 16 2 2.90 Charles Schwab has a consensus price target of $121.17, suggesting a potential upside of 10.73%. Given Charles Schwab’s stronger consensus rating and higher probable upside, analysts plainly believe Charles Schwab is more favorable than Sonim Technologies.

Valuation and Earnings This table compares Sonim Technologies and Charles Schwab”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Sonim Technologies $93.63 million 0.05 -$20.66 million ($8.02) -0.40 Charles Schwab $23.92 billion 7.91 $8.85 billion $5.50 19.90 Charles Schwab has higher revenue and earnings than Sonim Technologies. Sonim Technologies is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk Sonim Technologies has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Charles Schwab has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Summary Charles Schwab beats Sonim Technologies on 14 of the 15 factors compared between the two stocks.

(Get Free Report)

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. The company offers ruggedized mobile phones, such as Sonim XP10, Sonim XP5plus, Sonim XP3plus, and Sonim XP Pro; Sonim mobile hotspot; industrial-grade accessories. It sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada; and sells wireless carrier channels through distribution channels in North America and Europe. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, mining, and public safety sectors. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

About Charles Schwab (Get Free Report)

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It also provides digital retirement calculators; integrated web-, mobile-, and software-based trading platforms, real-time market data, options trading, premium research, and multi-channel access; self-service education and support tools; online research and analysis tools; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.

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Charles Schwab stock, along with Robinhood Markets, Ameriprise and LPL Financial, are in or near buy zones in the ongoing stock market action.

Dave Ramsey built a brand on the promise that anyone can retire a millionaire for pocket change, but four days after making that claim on air, his own co-hosts ran the numbers for a real caller and landed somewhere very…

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On August 27, 2026, Dave Ramsey told listeners that “$100 a month invested from age 25 to age 65 in a decent growth stock mutual fund at market rates of return is $1,176,000. Anyone can become a millionaire. It’s not that complicated.” Four days later, on the August 31, 2026 show close, his co-hosts priced the same outcome for a listener who started late. The new number was $2,275 a month.

The caller was a 44-year-old grad student with $124,000 already saved. Co-host Jade Warshaw said hitting “almost $1.7 million” by age 60 would require investing $2,275 a month for 15 years, or 15% of the couple’s $182,000 gross household income. Co-host George Kamel added that the $1.7 million figure excludes the husband’s employer 401(k) match, which the plan pauses entirely. A 20-year delay raises the price of the millionaire outcome by roughly 22 times.

Technically True, Practically Misleading The $100 claim is arithmetically defensible and behaviorally deceptive. It works only if you start at 25, never miss a month, ride 40 years of equity returns, and pay near-zero fees. Change any input and the number collapses. The show’s own math on August 31 proves it.

Compound growth depends on time above all else. A dollar invested at 25 has 40 years to double roughly six times at market rates. A dollar invested at 44 has 15 years, fewer than three doublings. That gap explains why the monthly ticket jumps from three digits to four.

Back-solve Warshaw’s calculator and the implied annual return sits around 11% to 12%, which is Ramsey’s assumption too. That return is aggressive, leaning on the recent past: the S&P 500 ETF rose roughly 529% from August 31, 2011 ($122) to August 28, 2026 ($769). The projection asks the next 15 years to repeat one of the strongest 15-year stretches in market history. If the next 15 deliver 7% real returns instead of 11% to 12% nominal, the $1.7 million target moves out of reach at $2,275 a month.

Use a compound growth calculator with the show’s own numbers:

[compound-interest principal=124000 monthly=2275 rate=11 years=15]

The plan also carries hidden costs never mentioned in the $100 slogan. It requires wiping out $30,000 of unsubsidized student loans down to $5,000 in savings, cash-flowing about $6,000 per semester of grad school, and the husband pausing his 401(k). Pausing to catch up means walking away from employer matching money for years, a real cost the $1.7 million headline does not net out.

What a 20-Year Delay Actually Costs Two savers, same target, same assumed return:

Start at 25: $100 a month for 40 years lands near $1,176,000 at market rates. Start at 44: Reaching a similar seven-figure balance in 15 years requires roughly $2,275 a month, and only if returns cooperate. The gap is the tax the market charges for procrastination. Ramsey’s own research argues the same point: his study of 10,000 millionaires found that “the behavior matters more than the math.” Behavior compounds. So does delay.

What to Do This Week If you are closer to 25 than 44, automate a recurring contribution today into a low-cost index fund inside a Roth IRA or a 401(k) with a match. Charles Schwab (NYSE:SCHW | SCHW Price Prediction) reported 1.4 million new brokerage account openings in Q2 2026 and $13.08 trillion in total client assets. Fractional shares and no-minimum index funds mean the $100 hurdle is administrative.

If you are closer to 44, run the real numbers before accepting a slogan. Open a compound growth calculator, enter your current balance, your realistic monthly contribution, a return assumption you can defend (7% real is more realistic than 12% nominal), and your actual years to retirement. Compare against a benchmark: the national average 12-month CD APY is 1.71% as of August 2026, which is the floor your equity assumption is trying to beat.

The $100 millionaire is real, but only if you buy the ticket at 25. Every year you wait raises the price.

Contact [email protected] for any questions or corrections.

Bank of Nova Scotia purchased a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 16,667 shares of the financial services provider’s stock, valued at approximately $3,780,000.

Other large investors also recently bought and sold shares of the company. State Street Corp increased its holdings in Charles Schwab by 1.0% in the 3rd quarter. State Street Corp now owns 73,156,290 shares of the financial services provider’s stock worth $6,984,231,000 after acquiring an additional 691,671 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Charles Schwab by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider’s stock valued at $3,747,646,000 after purchasing an additional 98,242 shares during the period. Franklin Resources Inc. increased its stake in shares of Charles Schwab by 0.3% during the fourth quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider’s stock worth $3,015,720,000 after purchasing an additional 78,020 shares in the last quarter. Primecap Management Co. CA increased its stake in shares of Charles Schwab by 9.7% during the fourth quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider’s stock worth $2,325,512,000 after purchasing an additional 2,066,884 shares in the last quarter. Finally, Fisher Asset Management LLC raised its position in shares of Charles Schwab by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 21,818,514 shares of the financial services provider’s stock worth $2,179,888,000 after purchasing an additional 171,926 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth Several equities research analysts have commented on SCHW shares. TD Cowen boosted their price objective on Charles Schwab from $108.00 to $109.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. UBS Group set a $135.00 target price on Charles Schwab in a research report on Monday, August 3rd. Morgan Stanley lifted their price target on Charles Schwab from $133.00 to $136.00 and gave the stock an “overweight” rating in a research note on Monday, July 27th. Argus lifted their price target on Charles Schwab from $108.00 to $114.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Finally, Wolfe Research reiterated an “outperform” rating and set a $127.00 price target on shares of Charles Schwab in a research report on Tuesday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $121.17.

Check Out Our Latest Analysis on SCHW Insider Buying and Selling In related news, insider Nigel J. Murtagh sold 32,947 shares of the business’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $104.01, for a total value of $3,426,817.47. Following the transaction, the insider owned 57,972 shares in the company, valued at $6,029,667.72. The trade was a 36.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula A. Sneed sold 5,263 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $107.15, for a total value of $563,930.45. Following the completion of the transaction, the director directly owned 91,711 shares in the company, valued at approximately $9,826,833.65. The trade was a 5.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 398,984 shares of company stock valued at $41,699,569 over the last ninety days. Company insiders own 6.30% of the company’s stock.

Charles Schwab Stock Performance Shares of Charles Schwab stock opened at $112.43 on Wednesday. The Charles Schwab Corporation has a 52 week low of $83.96 and a 52 week high of $114.53. The business’s fifty day simple moving average is $102.42 and its 200-day simple moving average is $96.22. The firm has a market cap of $194.43 billion, a PE ratio of 20.44, a price-to-earnings-growth ratio of 0.85 and a beta of 0.76. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52.

Charles Schwab (NYSE:SCHW – Get Free Report) last posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.06. The firm had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm’s revenue for the quarter was up 20.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.14 EPS. Equities analysts forecast that The Charles Schwab Corporation will post 6.46 earnings per share for the current year.

Charles Schwab Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, August 14th. Charles Schwab’s payout ratio is currently 23.27%.

Charles Schwab Profile (Free Report)

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

See Also Five stocks we like better than Charles Schwab Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize Want to see what other hedge funds are holding SCHW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Charles Schwab Corporation (NYSE:SCHW – Free Report).

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WESTLAKE, Texas--(BUSINESS WIRE)--Charles Schwab today announced plans to add three tokens to the Schwab Crypto™ platform. The additions include: Solana (SOL) Avalanche (AVAX) Chainlink (LINK) The additions are part of Schwab's plans to thoughtfully expand its digital asset offering with established cryptocurrencies that align with client demand. These new digital assets will be available in the coming months for clients to buy and sell in their Schwab Crypto accounts. Schwab Crypto, which bega.

WESTLAKE, Texas--(BUSINESS WIRE)--Schwab Advisor ServicesTM will welcome thousands of independent registered investment advisors (RIAs) to Boston for its 36th annual IMPACT® conference the nation's largest and longest-running gathering of independent advisors. Attendees will experience three days of keynote addresses, educational programming, and networking opportunities covering the strategies and trends shaping the industry today. “Each year, IMPACT® showcases the strength of RIAs and how far.

WESTLAKE, Texas--(BUSINESS WIRE)--Charles Schwab Foundation and Boys & Girls Clubs of America today announced Carol L., a recent graduate of Balboa High School in San Francisco, as the 2026 Money Matters Ambassador. Carol, who will attend the University of California, Berkeley, this fall as a first-generation college student, was selected from teens nationwide for her leadership, academic achievement, and commitment to financial literacy. She will serve as a national advocate for financial.

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The country heads into a midterm election in which wealth inequality is among the hottest topics. California is advancing a wealth tax. Progressives promise to make the rich pay a “fair share” as Social Security marches toward insolvency, and pharmacies lock up toothpaste.

Meanwhile, according to Bloomberg’s “Great American Tax Dodge” series, more than $1 trillion is already deployed in “tax alpha” strategies devoted to delaying or shrinking payments to the government.

The strategies are legal, engineered by household-name asset managers, and growing faster than most tax bills Congress could pass.

Where the Money Actually Sits Roughly $150 billion sits in tax-aware long-short accounts, with roughly $1 billion a week flowing in.

Per Bloomberg, AQR became the world’s largest hedge fund, past $140 billion at the end of March, with about $70 billion in tax-loss strategies, up from about $3 billion in 2023. Rival Quantinno holds about $60 billion, up from almost nothing five years ago.

A Bloomberg analysis of SEC filings identified 105 ETFs created through Section 351 exchanges, holding $22.1 billion at launch and deferring at least $6.5 billion in embedded capital gains. More than half listed last year.

At Charles Schwab (NYSE:SCHW | SCHW Price Prediction), the strategy generated roughly $70 million of revenue by the second quarter and about 1% of firm revenue, which totaled $7.07 billion in the second quarter, a business the 55-year-old firm entered only last year.

How It Works Tax-aware long-short accounts use leverage to hold winners and losers simultaneously. Losses get harvested to offset gains elsewhere: a business sale, an RSU vest, a concentrated stock position. A Section 351 conversion lets an investor swap appreciated stock into a new ETF without triggering tax, deferring the embedded gain, potentially forever if shares are held to death and stepped up to heirs. The techniques are old, but the scale is new.

Rate Being Avoided Is Already Historically Low A half-century ago, when the private equity industry was just getting started, the top effective rate on long-term capital gains reached almost 40%, per the nonpartisan Tax Policy Center. In the decades that followed the top federal rate fell as low as 15%. Today it is 23.8%, including the net investment income tax.

That is the rate the industry keeps engineering lower still. The political fight is over moving a number that fewer and fewer very large fortunes actually pay in full.

Regulators Watching, Not Yet Acting Treasury officials told an industry seminar in New York in July 2026 that some new strategies promise outcomes Congress did not intend when writing tax laws and are “potentially abusive,” and that authorities will not turn a blind eye. Officials separately warned some strategies may be crossing lines “that should not be crossed.”

Treasury first signaled interest in 351 conversions late last year, floating a “transactions of interest” label. No guidance has been issued. The Investment Company Institute filed a comment letter in May seeking clarity.

Fidelity, with almost $20 trillion under administration, indefinitely shut new clients out of the strategy and raised fees for some existing ones. Schwab tightened access in April and again in June. Goldman Sachs (NYSE:GS), BNY Pershing and Apex Fintech Solutions moved in to fill the gap.

AQR added a disclosure acknowledging the IRS could someday bar the benefits or retroactively find them illegal, in which case “penalties may apply.”

Critics and Defenders Tom Steyer, the billionaire Democrat who ran an unsuccessful bid this year to become California’s governor, told Bloomberg: “It’s a game to see how rich they can be. Do I consider that unpatriotic, selfish and unrealistic in the long run? Absolutely.”

Morris Pearl, the former BlackRock (NYSE:BLK) managing director who leads the “Patriotic Millionaires,” said: “I am not going to say these people are evil, but a major industry in America is this sort of financial engineering.”

Former FDIC chair Sheila Bair told Bloomberg: “There’s no other reason to do it than avoid paying taxes. There’s risk for the firms offering this.”

AQR says it adapts its process “to be more tax efficient in a manner designed to operate within all relevant guidance and regulations”. Crypto hedge fund founder David Tawil put the defense more bluntly: “Do not blame Cliff Asness” because he did not write the laws, “Go call the IRS.”

Why the Debate You’re Watching May Miss the Point Every one of these maneuvers is legal. A debate over marginal rates assumes the rates determine what gets collected. The tax alpha industry bets they increasingly do not.

Some of the highest-income filers are simply leaving states that tax them hardest. Hoover Institution scholars found that nearly 30% of California’s billionaire tax base had already departed before the wealth-tax initiative qualified for the ballot, an outflow they value at $536 billion in wealth. Whatever rate Congress or Sacramento sets, an industry and a moving van exist to route around it.

For readers whose income arrives through W-2 withholding and 1099s from a brokerage, available tools are narrower but real: tax-loss harvesting in a taxable brokerage account, ETFs over mutual funds where possible, the 0% long-term capital gains bracket if your income allows, and step-up in basis at death. That is the reader-scale version of what the trillion-dollar industry does at scale.

Contact [email protected] for any questions or corrections.

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The wealthiest investors in America pay hedge funds and wealth managers millions of dollars for an industrialized version of a tax move you can run yourself, for free, before the calendar year closes.

Bloomberg’s “Great American Tax Dodge” reporting describes a boom in what the industry calls “tax alpha”: more than $1 trillion is now deployed in strategies designed to delay or shrink payments to the government. Roughly $150 billion sits specifically in “tax-aware long-short” accounts, with wealthy investors reportedly adding about $1 billion a week.

AQR Capital Management became the world’s largest hedge fund, surpassing $140 billion by the end of March, with about $70 billion in tax-loss strategies, up from about $3 billion in 2023. An AQR pitch to wealth managers sketched a $100 million investment in its most aggressive Flex strategy tripling over 10 years while producing more than $580 million of usable losses along the way. A Colorado adviser told Bloomberg the tax savings sometimes reach 10 times the fees clients pay.

Why Wall Street’s Version Isn’t Coming to Your Account These strategies require large minimums, heavy borrowing, daily trading, margin capacity and sometimes complex derivatives. Charles Schwab (NYSE:SCHW | SCHW Price Prediction) and Fidelity have both restricted access, and Treasury has called some strategies in this universe “potentially abusive.” Ordinary investors should not chase them, and reputable brokerages will not let them.

The engine underneath is simple: sell a loser to offset a winner. That mechanic is available to any retiree with a taxable brokerage account, at no cost, provided the trade settles by the last market day of the year. With December 31, 2026 still months out, there is time to plan instead of scramble.

How a Realized Loss Cuts Your Tax Bill If a holding in your taxable brokerage account is worth less than you paid, selling it creates a realized capital loss. That loss first offsets realized capital gains of the same character: short-term losses against short-term gains, long-term losses against long-term gains. Any net loss left over can offset gains of the other character.

Remaining losses can reduce ordinary income, but only up to an annual cap set by statute. Losses beyond the cap carry forward to future tax years with no expiration. The exact dollar figures and rules live in IRS Publication 550 and IRS Topic No. 409. Confirm current numbers with the IRS or a CPA before you file a sell order.

Retirement Accounts Get No Benefit From This Move Harvesting a loss works only in a taxable brokerage account. It does nothing inside a traditional IRA, Roth IRA, 401(k), or any other tax-deferred or tax-free account, because those accounts have no annual taxable gains to offset. If your investable assets sit mostly in retirement accounts, this strategy does not apply to most of your portfolio.

Retirees with modest taxable income face a second wrinkle. If your income is low enough, long-term gains may already be taxed lightly, one of several quirks we cataloged alongside the costlier IRS rules in a free tax trap map for retirees. A CPA can tell you where your bracket actually lands for the 2026 tax year.

Wash Sale Rule Will Void the Whole Thing The wash sale rule is where do-it-yourself harvesters get burned. If you sell a security at a loss and then buy the same or a “substantially identical” security back within the defined window around the sale, the IRS disallows the loss. The window applies before and after the sale, and it applies across your accounts, including your spouse’s and your IRA.

If you want to hold exposure to the same market segment after selling, buy something different enough that no reasonable person would call it substantially identical, and wait out the full window before repurchasing the original. Publication 550 covers the specifics.

Timing, Distributions, and Record Keeping Mutual fund distributions. Funds routinely push out capital gain distributions in December. Harvested losses can absorb them. Deadline is the last trading day. That may fall before December 31 if markets are closed that day. Waiting for the final week creates execution risk. Bond funds are worth reviewing early: the 10-year Treasury yield sat at 4.65% on August 19, 2026, near its 52-week high of 4.75%, which means many taxable bond positions still show unrealized losses. Confirm your cost basis. Your broker reports it, but check older lots and shares acquired through reinvested dividends. A wrong basis inflates or shrinks the loss you actually have. Don’t Let the Tax Tail Wag the Portfolio The best harvest is a loss you were willing to take anyway. Selling a holding you still believe in, purely for a deduction, can cost more in future returns than it saves at the IRS. Walk through this math with a fiduciary adviser or CPA before year-end, not during the last week of December.

Contact [email protected] for any questions or corrections.

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When brokerages making money on a strategy start turning clients away, pay attention. That is what just happened with tax-aware long-short accounts, the fastest-growing tax dodge for the very wealthy.

Two Custodians Just Slammed the Brake Per a Bloomberg “Great American Tax Dodge” investigation published August 18, 2026, Charles Schwab (NYSE:SCHW | SCHW Price Prediction) curbed how much of an adviser’s book can sit in these accounts, raised minimums, imposed borrowing and margin limits, and warned it will issue margin calls when accounts breach the new thresholds.

Fidelity moved earlier and harder. The largest US brokerage, with almost $20 trillion under administration, shut its doors to new clients and hiked fees for some existing ones. A spokesperson said “Fidelity chose to restrict access to new clients due to the unprecedented growth of these strategies on our platform.”

Schwab CEO Rick Wurster told Bloomberg the firm still wants to support the strategy and is going to great lengths to make sure advisers understand how complex and risky the accounts can be. On the July earnings call, he described the market as moving “past” the initial surge and into “more of a stable growth environment.”

What a Tax-Aware Long-Short SMA Actually Does The account bets both on and against companies, engineered to create losses alongside long-term gains, so the accumulated losses erase taxes owed on other investments or income. It’s aimed at people facing big capital events like private equity payouts, business sales, or large market gains.

The accounts require relentless daily transactions, heavy borrowing that can trigger margin calls, a large number of shorted stocks, and sometimes complex derivatives. Fidelity and Schwab supply the financing and stock loans that make it work. Schwab’s Jalina Kerr told Bloomberg: “These sophisticated strategies can involve thousands of positions and significant client reporting intricacies.” Clients receive hundreds of pages of tax documents.

Scale and Systemic Risk The strategy sits at the cutting edge of the $1 trillion “tax alpha” universe that helps wealthy people postpone or eliminate capital gains taxes. Schwab’s revenue from the business climbed to roughly $70 million by the second quarter. CFO commentary pegged it at “roughly 1%” of firm revenue, against total Q2 revenue of $7.1 billion.

Quantinno Capital, the shop that brought the first retail-scale tax-aware long-short SMA to Fidelity in October 2021, now has about $60 billion of assets, up from almost nothing five years ago. AQR surpassed $140 billion at the end of March, about $70 billion of it in tax-loss strategies, up from about $3 billion in 2023.

The custodians’ concern: as more money piles in, more of the same stocks get shorted, and a sudden loss could force everyone to unwind at once. If clients can’t post cash, the brokerage covers the shortfall. Former FDIC chair Sheila Bair told Bloomberg: “There’s no other reason to do it than avoid paying taxes. There’s risk for the firms offering this.”

Where the Wealthy Went Next The plumbing rerouted. Wealth managers ran to Schwab when Fidelity pulled back, and when Schwab curbed access, less traditional firms started fielding calls. Goldman Sachs (NYSE:GS) and BNY Pershing have stepped into custody for these accounts, with Goldman citing “longstanding expertise as prime brokers.”

That’s consistent with Goldman’s Q2. Asset and wealth management revenues hit $4.6 billion, up 20% year-over-year, with wealth client assets near $2 trillion and CEO David Solomon saying the firm has “never been better positioned to help founders and executives realize and manage newly created wealth.”

Regulators are watching. At a July gathering in New York, Treasury officials warned that some strategies designed to slash tax bills may be crossing lines “that should not be crossed.” No rule has been issued.

Retail Playbook: Tax Moves You Can Actually Use This SMA isn’t retail. Minimums, margin calls, and short books put it out of reach for most investors. But the underlying tax code is the same. Three legitimate moves for a taxable brokerage:

Harvest losses inside your regular brokerage. Realized losses offset realized gains dollar for dollar, and up to $3,000 of ordinary income each year, with the remainder carried forward. Mind the 30-day wash-sale rule. Prefer ETFs over mutual funds in taxable accounts. The in-kind creation and redemption mechanism lets ETFs shed low-basis lots without pushing capital gains distributions onto your 1099. Use the 0% long-term capital gains bracket in low-income years. Between retirement and RMDs, many households have a window to realize gains at a 0% federal rate. Pair that with step-up in basis at death for lots you never need to sell. That middle item is bigger than it looks. The quiet years between a last paycheck and the first required withdrawal may be the lowest tax rate a household ever sees again, and we sized up how to use that window in a free guide: The Roth Window.

Clients Piled In Anyway One Boston-based adviser to high-net-worth clients told Bloomberg that on hearing the Schwab news, some of his biggest clients feared increasingly draconian restrictions were coming, and their response was to add even more money to their tax-aware accounts at Schwab while they still could. Schwab, meanwhile, recently recruited for a new role leading its long-short SMA program with a salary as high as $269,900.

When two firms whose margin desks profit from a trade start restricting it, and the buyers respond by ordering more, the story stops being about taxes and starts being about crowding. For a retiree, this is a math conversation worth having with a fiduciary advisor or CPA, not a strategy to chase.

Contact [email protected] for any questions or corrections.

Key Takeaways SCHW touched a 52-week high of $112.20 before closing at $111.68, extending its strong business momentum.Schwab's diversified wealth platform, digital innovation, and AI-driven tools support efficiency and growth.Schwab's core net new assets hit a record $58.1B in July 2026, pushing total client assets to $13.04 trillion. Charles Schwab (SCHW - Free Report) touched a 52-week high of $112.20 during yesterday’s trading session, before closing at $111.68. The investor optimism over the stock is driven by strong business momentum, product launches, robust client asset gathering, and an upbeat 2026 financial outlook.

Over the past year, shares of SCHW have rallied 16.6%, trailing the industry's gain of 27.8%. During the same period, peer performances diverged significantly, with Interactive Brokers Group, Inc. (IBKR - Free Report) surging 45.1% while Robinhood Markets, Inc. (HOOD - Free Report) has plunged 14.9%.

One-Year Price Performance

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Factors Aiding Schwab’s StockDiversified Wealth & Digital Innovation: Schwab’s continued expansion in advice, managed investing and digital capabilities is strengthening its higher-value wealth platform and reducing reliance on episodic trading activity. Managed investing solutions revenues expanded at a compound annual growth rate (CAGR) of 11.1% from 2020–2025, while total client assets witnessed a CAGR of 12.2%, with both metrics continuing to grow in the first half of 2026. Strategic acquisitions, including TD Ameritrade, USAA IMCO, Wasmer Schroeder, Motif and Forge, have broadened Schwab’s distribution and product capabilities across retail, RIAs and private markets.

Last week, the company further strengthened its trading franchise by launching Single Stock Futures for more than 50 prominent U.S. stocks on the thinkorswim platforms. The offering provides eligible retail clients with around-the-clock price exposure and greater flexibility to take bullish or bearish positions, broadening Schwab’s product suite and potentially boosting client engagement and trading activity. The company is also advancing AI across client and advisor workflows, including Portfolio Insights, AI-enabled assistants, generative search and advisor-focused tools. Schwab launched Schwab Crypto in the second quarter of 2026, providing retail clients access to Bitcoin and Ethereum, and invested $65 million in Wealth.com, an AI-powered tax platform for wealth management.

Combined with continued investments in financial consultants, wealth advisers and new branches, these initiatives should support client asset growth, deepen relationships and create incremental fee-growth opportunities.

Net Interest Revenue & Margin Growth: Schwab’s focus on repaying high-cost bank supplemental funding balances, which have declined substantially from the peak of $97.1 billion in May 2023, along with growth in interest-earning assets, has continued to support net interest revenues (NIR) and margins. NIR recorded a five-year CAGR of 14% (2020–2025), while net interest margin (NIM) rose steadily to 2.74% in 2025 from 2.12% in 2024, 1.98% in 2023, 1.78% in 2022, and 1.45% in 2021. The upward trend continued in the first half of 2026.

Strong lending activity is supporting NIR, with margin balances reaching $169.9 billion at the end of July 2026, up 51% from year-end 2025, providing an additional source of interest revenue while reflecting elevated client engagement. The company expects 2026 NIM to be in the 3.00–3.10% range, with the fourth quarter number being in the range of 3.25–3.30. Lower-cost funding, growing interest-earning assets and stronger lending activity will support NIR growth and provide a more durable earnings tailwind.

Strong Asset Gathering and Client Growth: Schwab continues to benefit from strong client acquisition, asset gathering and trading activity. Core net new assets reached a July record of $58.1 billion, up 24% year over year, while total client assets rose 19% to $13.04 trillion. The company opened 417,000 new brokerage accounts during the month, an 11% increase from the prior-year period, taking active brokerage accounts to 39.94 million.

Client engagement also remained strong, with daily average trades reaching 11.6 million in July, up 61% year over year. The STAX score increased to 59.8 from 59.1 in June, with clients remaining net buyers across stocks, ETFs and options, indicating sustained trading activity and bullish investor positioning. Continued growth in client assets, accounts and trading activity is expected to support higher fee and transaction revenues, cross-selling opportunities and deeper client relationships while strengthening Schwab’s long-term prospects.

Robust Balance Sheet: Schwab’s strong balance sheet and earnings profile support continued capital distributions while providing flexibility to invest in growth. As of June 30, 2026, the company had cash and cash equivalents of $40.6 billion against total debt of $36.6 billion. Its focus on maintaining a low-cost capital structure has supported shareholder returns.

In January 2026, Schwab raised its quarterly dividend by 19% to 32 cents per share, marking its fifth dividend increase in the past five years. Schwab’s dividend yield stood at 1.15%, below the industry’s average of 1.69%. The company also announced a $20 billion share repurchase authorization in July 2025. Regular dividend increases and share repurchases highlight Schwab’s strong capital-generation capacity and commitment to returning capital to shareholders.

Dividend Yield

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Superior ROE: Schwab’s 24.53% trailing 12-month return on equity (ROE), well above the 14.08% industry average, highlights its superior capital efficiency and ability to generate stronger returns from shareholders’ equity. This higher profitability provides the company with greater capacity to reinvest in growth, support client acquisition and compound earnings. The strong ROE also reflects the company’s ability to leverage its scale and operating model to generate attractive returns while maintaining financial flexibility.

Return on Equity TTM%

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Earnings Momentum: Schwab’s has consistently surpassed the Zacks Consensus Estimate for earnings in recent quarters. The consensus estimate projects earnings of $6.46 per share in 2026 and $7.83 in 2027, up from $4.87 in 2025, indicating a strong earnings growth trajectory. Management expects mid-teens earnings growth through the cycle, supported by continued revenue growth, expense discipline and balance sheet flexibility. These factors should help sustain earnings momentum and support further shareholder value creation.

Earnings Estimate

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Concerns for SchwabSchwab’s elevated expense base remains a key concern as it continues to invest in technology, branch expansion, advisor coverage, new products and AI programs. Management expects 2026 adjusted expenses to increase 9.5–10.5% year over year, driven by higher volume-related costs and the inclusion of Forge, which could pressure operating leverage if market activity moderates.

Competitive pressure is also intensifying as peers and fintech platforms rapidly adopt AI-enabled advice, cash management and digital investing capabilities, potentially making Schwab’s investments increasingly necessary to maintain parity rather than create a durable advantage.

Additionally, Schwab remains sensitive to market levels, volatility and client trading behavior. Although trading revenues increased in 2024, 2025 and the first half of 2026, they recorded a negative 1.4% CAGR over the four years ended 2025. A decline in market activity or client engagement could reduce transaction revenues, asset-based fees and margin lending demand, weighing on overall revenue and earnings growth.

SCHW’s Valuation AnalysisIn terms of valuation, SCHW stock appears expensive relative to the industry. The company is currently trading at a forward 12-month P/E of 15.24X, which is higher than the industry’s 14.20X.

Price-to-Earnings F12M

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Meanwhile, Robinhood has a P/E F12M ratio of 37.96, while Interactive Brokers’ P/E F12M ratio stands at 30.23. Hence, Schwab is trading at a discount compared with its peers.

Parting Thoughts on SchwabWhile rising expenses, competitive pressure, market sensitivity and a premium valuation remain concerns, Schwab’s strong client and asset growth, improving NIR and NIM, robust capital position and solid earnings momentum provide meaningful support.

The company’s diversified wealth platform, expanding digital capabilities, strong ROE and steady capital returns further strengthen the long-term growth outlook. Hence, SCHW appears well positioned for investors seeking exposure to a scaled financial services franchise with diversified revenue streams and sustainable earnings growth.

Schwab currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Schwab's client assets rose 19% y/y to $13.04T, with core net new assets hitting a July record of $58.1B.Advisory assets climbed 21.5% to $6.70T, while new brokerage accounts rose 11% y/y.Schwab's July 2026 DATs surged 61% y/y to 11.6M, supporting further trading-related revenue growth. Charles Schwab’s (SCHW - Free Report) client asset momentum remained strong in July 2026, reflecting robust asset gathering and sustained client engagement. Total client assets reached $13.04 trillion at month-end, up 19% year over year, while assets receiving ongoing advisory services increased 21.5% to $6.70 trillion. Core net new assets hit a July record of $58.1 billion, rising 24% year over year.

Schwab’s asset growth has been supported by a combination of organic asset inflows and its efforts to expand its client base. Inorganic expansion has also played an important role, with acquisitions contributing to the company’s client asset growth over the past several years. Schwab’s total client assets saw a 12.2% compound annual growth rate (CAGR) over the five years ended 2025, with the uptrend continuing through the first six months of 2026. Its focus on advisory solutions has also been bearing fruit, with managed investing solutions revenues witnessing an 11.1% CAGR during the same five years.

The rising asset base is particularly beneficial because it can support revenue growth even when Schwab reduces fees on certain investing solution products. A larger pool of average client assets helps offset fee compression and supports higher asset management and administration revenues.

At the same time, heightened market volatility and strong investor participation have been driving trading activity. Schwab reported a year-over-year increase in trading revenues in the first half of 2026, while July’s strong asset gathering and client engagement provide a favorable backdrop for further trading-related revenue growth. In July, Schwab’s Client Daily Average Trades (DATs) were 11.6 million, up 61% year over year.

Thus, continued organic asset gathering, favorable market conditions and Schwab’s inorganic expansion efforts should support further growth in client assets and strengthen its revenue-generating base. The Zacks Consensus Estimate for SCHW’s 2026 and 2027 revenues is $28.29 billion and $31.70 billion, implying respective year-over-year growth of 18.3% and 12%, underscoring expectations for continued top-line momentum.

Additional Data From Schwab’s July ActivitySCHW’s average interest-earning assets at the end of July 2026 were $449.9 billion, which rose 8% from July 2025.

Margin balances at month end were $169.9 billion, up 92% from the year-ago month. Total money market funds were $695.3 billion, up 6%.
Schwab opened 417,000 new brokerage accounts in July 2026, up 11% from the year-earlier month.

The company’s active brokerage accounts totaled 39.9 million, up 6% year over year. Client banking accounts were 2.4 million, up 13% from July 2025. The number of workplace plan participant accounts was up 5% year over year to 5.9 million.

Schwab’s Competitive LandscapeSchwab’s two closest peers are Robinhood Markets, Inc. (HOOD - Free Report) and Interactive Brokers (IBKR - Free Report) . Let us see how these two firms performed in July 2026.

Robinhood reported strong growth in equity and options DATs in July, underscoring continued momentum in its active-trader business. Equity DATs rose 29.7% year over year to 4.8 million, while options DATs surged 90.9% to 2.1 million. However, crypto DATs fell 45.4% to 0.6 million, highlighting the mixed trend across Robinhood’s trading businesses.

Likewise, Interactive Brokers reported daily average revenue trades of 4.4 million in July 2026, up 27% year over year, while customer accounts rose 34% to 5.32 million. IBKR continues to expand its product suite and global reach, including nearly 24/5 Forecast Contracts trading, a unified prediction markets interface and broader access to Korean equities.

SCHW’s Price Performance, Valuation & Estimate AnalysisShares of Schwab have rallied 17.8% over the past six months compared with the industry’s rise of 16.4%.

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From a valuation standpoint, SCHW trades at a forward price-to-earnings (P/E) ratio of 15.10, above the industry average.

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The Zacks Consensus Estimate for Schwab’s 2026 and 2027 earnings indicates year-over-year growth of 32.7% and 21.1%, respectively. Over the past 30 days, earnings estimates for both years have been revised upward.

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Currently, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of July 2026 include:This press release features mul

This week’s July CPI report looms over markets, with so much uncertainty already bubbling up under portfolios. Investors have options, however, for an outlook that sees inflation continue to resist efforts to tame it. Value ETF strategies, for example, may outperform in times of growing inflation. The American Century U.S. Quality Value ETF (VALQ), for example, may do well combining ETF tax efficiency and a dedicated, quality value view.

Key Takeaways: VALQ’s relatively competitive fee may help it appeal as a source of return amid potentially stubborn inflation. The strategy has returned 17.3% over the last one year period per ETF Database data. It has done so while largely avoiding the concentration risk found in growthier, broad market funds. VALQ charges a 29 basis point (bps) fee for its approach. The strategy tracks the American Century U.S. Quality Value Index. That index screens stocks for quality, value, and income. VALQ aims to balance stocks showing sustainable income with solid value stocks. Specifically, the strategy focuses on a tight slice of the market, combining those quality and value views to craft its portfolio.

The value ETF has performed well over the long term and could be poised to spike this year if the CPI report shows worsening inflation. The fund has returned 17.3% over the last twelve months and 14.65% over the last three years. That three year performance in particular, per ETF Database data, has seen the ETF beat its ETF Database Category average. That Large Cap Value Equities category average came in at just 14.2% over three years.

With stocks already highly valued, and concentration risk looming, VALQ can help diversify portfolios. The strategy right now includes the kind of classic value segments like financials and communications companies. That includes names like Charles Schwab (SCHW) and Verizon Communications (VZ), up 6.4% and 16.6% YTD, respectively. 

See more: How KORP’s Corporate Bond Yields Have Beaten the Benchmark

Together, the quality value ETF could prove a useful strategy to add if the CPI report augurs tougher inflation ahead. The fund’s steady performance and usefulness as a diversifier may make it one to watch in the weeks and months ahead. 

For more news, information, and strategy, visit the Core Strategies Content Hub.

VettaFi LLC (“VettaFi”) is the index provider for VALQ for which it receives an index licensing fee. However, VALQ is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of VALQ.

SAN JOSE, Calif. & HOUSTON--(BUSINESS WIRE)--Linqto, Inc. today announced that it continues to pursue its litigation against Forge Global, Inc. and its owner, The Charles Schwab Corporation, and would seek full monetary damages for harms caused to Linqto's 13,000+ customers, as well as repayment of all legal fees connected to this case. Linqto also announced that it is pursuing alternative risk mitigation strategies to exit bankruptcy as quickly as possible should Forge Global continue to refus.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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On the August 6 episode of her Women & Money podcast, Suze Orman read an email from a 62-year-old listener named Ed who had just retired against his wife’s wishes and was about to pick the wrong payout on his employer annuity. Her response was blunt: “The naivete, the bare fact that you ask questions like ‘can I open up a Roth IRA?’, shows that innocently, your knowledge of money and how it works is nil. But the knowledge of your spouse is absolutely extraordinary.”

If Ed had signed the paperwork he was leaning toward, his wife’s income after his death would have been cut roughly in half, and Social Security would take another chunk on top of that. This trap springs on surviving spouses every year.

The Verdict: Orman Is Right, and the Math Is Brutal Ed had $200,000 in an employer annuity with three options: a lifetime payment with a 50% survivor benefit, a period-certain payout, or an IRA rollover. The lifetime option paid $1,211 a month while Ed was alive.

Here is what the 50% joint and survivor election does. When Ed dies, his wife keeps half of that check. She would go from $1,211 a month down to $605 a month, or $7,266 a year. That is the survivor benefit cliff people never see coming when they sign the enrollment form.

Stack Social Security on top. When a spouse dies, the survivor keeps the higher of the two Social Security checks, not both. So Ed’s wife loses one Social Security payment entirely and loses $600 a month of income at the same time. Two income streams collapse into one shrunken check in the same week.

Orman’s alternative was a direct rollover into an IRA at a brokerage. Her rough projection: “Eight years from now, even at 4 to 5%, you’re going to have approximately $300,000 in there. That would equate exactly to what you’d get from the 50% joint and survivor annuity. And if you die, your spouse will continue to get that as well.” The IRA passes the full balance to the beneficiary. The annuity passes half the check and keeps the principal.

The Variable That Changes Everything: The Age Gap Ed’s wife is 54 years old, eight years younger than he is. That single fact rewrites every default assumption in retirement planning.

Orman put it plainly: “Actuarially speaking, women live longer than men, especially in most cases when the man is eight years older to begin with than his wife.” Realistic planning assumes Ed’s wife will live 15 to 20 years past him, entirely on the survivor income he sets up now.

The age gap also blows up the Social Security plan. A younger spouse cannot claim her own retirement benefit until 62, and cannot claim a spousal benefit worth 50% of Ed’s until her own full retirement age of 67. Ed filing at 62 locks in a permanently reduced check that becomes the ceiling on his wife’s survivor benefit for the rest of her life. Orman’s verdict: “You collecting Social Security at 62 is just off the table. Forget about it.” Her advice was to work until 70, even at a different job, to max out the benefit his wife will eventually inherit.

For context, the 2026 Social Security COLA came in at 2.8%, which is the annual raise a delayed, larger benefit compounds on top of for decades.

What to Actually Do Reject any joint and survivor annuity below 100% without doing the math. Calculate the exact monthly income your spouse would live on after your death, then compare it to household expenses at that time. Use a custodian-to-custodian transfer for any rollover. Open the IRA at a brokerage like Fidelity or Charles Schwab (NYSE:SCHW | SCHW Price Prediction) and have the $200,000 check made out to the new custodian, not to you. A check in your name triggers withholding and a 60-day clock. Model Social Security with the age gap built in. Run claiming scenarios at ssa.gov assuming the younger spouse survives to 90. The higher earner filing later usually wins by a wide margin. Name a beneficiary on every retirement account. Spousal beneficiaries on IRAs are covered up to $500,000 in SIPC-style protections, and the account passes without probate. Both partners read the statements. Ed’s wife caught this. Most spouses do not get a second chance. Orman closed with her rule of thumb: “People first, Ed. You remember that, that means your wife. People first. Then money, then things.” The financial version is simpler. Before you sign a retirement election, make sure the person who will outlive you can actually live on what you left behind.

Contact [email protected] for any questions or corrections.

The first summer month was a hot one in several respects for Charles Schwab (SCHW +0.45%). Early in the month, the veteran brokerage and financial services provider reported that an internal trading indicator was doing extremely well, and toward the end, unveiled its latest quarterly earnings report.

The latter wasn't initially well received, but that sentiment turned bullish in the wake of several analyst price target increases. Ultimately, the stock increased in value over the month, with a gain of more than 14%.

Image source: Getty Images.

STAX success Schwab is sufficiently large, well-capitalized, and authoritative to maintain its own stock index that tracks its many clients' trading activity. The monthly Schwab Trading Activity Index (STAX), modestly named after the company, was on fire going into July. It rose to more than 59 in June, setting a new multi-year high and topping May's 55.

If trading is brisk enough to set a new multi-year high, any way we slice it, the company is doing well. Although Schwab no longer charges commissions for buying and selling equities, increased trading activity translates into gains in fundamentals such as margin loan balances.

Sure enough, when Schwab released its second quarter earnings on July 21, it trumpeted new quarterly records for net revenue, net income under generally accepted accounting practices (GAAP), and core net new assets.

That new top-line high was $7.1 billion, up a very sturdy 21% year over year, thanks in no small part to a net interest margin (NIM) that expanded by 35 basis points to an even 3%.

Net income, both GAAP and non-GAAP (adjusted) zoomed 32% higher, with GAAP coming in at $2.80 billion and adjusted landing at $2.93 billion ($1.62 per share). On average, analysts were modeling net revenue of $6.85 billion and adjusted net income of $1.54 per share.

Better, Schwab raised its guidance for full-year revenue growth to 17.5% to 18% (from 14% to 15%).

It felt counterintuitive, then, for the stock to decline in the wake of that impressive quarter. At that point, though, shares of Schwab and other top financial companies were riding fairly high after passing the Federal Reserve's (Fed) annual stress tests in June. Satisfying quarterly results from the big four banks helped too, as did their relatively generous dividend raises.

The run-up in stock prices for many financials raised expectations, and some investors were surely aching for a serious blowout of a second quarter from Schwab.

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Positive pundit pronouncements Before long, they were reminded just how solid Schwab's performance was. Several analysts tracking the stock raised their price targets on the company's equity.

Morgan Stanley, for example, did so twice in July, once before earnings (to $133 per share from $125) and once after (to $136). Probably needless to say, prognosticator Michael Cyprys maintained his overweight (buy) recommendation across both moves.

Those occurred in the closing days of the month, giving Schwab stock enough time to recover from that brief post-earnings sell-off. They also served to -- rightfully, in my opinion -- point out just how effective and prosperous the company is in most aspects of its business.

Argent Capital Management LLC acquired a new position in The Charles Schwab Corporation (NYSE: SCHW) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 250,749 shares of the financial services provider's stock, valued at approximately $23,565,000. Other hedge funds

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For years, the financial institutions handling President Donald Trump's sprawling investment portfolio have remained one of the most mysterious parts of his personal finances.

A CNBC analysis of Trump's 2025 annual financial disclosure filed with the Office of Government Ethics has linked JPMorgan Chase, Charles Schwab, UBS and Stephens Inc. to at least four of his eight numbered investment accounts: Account Nos. 3, 5, 6 and 8.

CNBC traced the connections through firm-specific investment funds, deposit programs and credit arrangements embedded in the portfolios. Separate analyses by three financial-industry experts, who asked not to be named because of the sensitivity of the president's holdings, corroborated CNBC's findings.

The disclosure does not always specify whether or to what extent each institution served as an investment manager, broker, custodian or in another capacity. The Wall Street Journal reported that a fifth account, Account No. 7, is managed by Schwab, though CNBC has not independently verified that relationship. Schwab declined to comment on whether Trump is a client.

Across all eight accounts, Trump disclosed at least $858 million in assets in 2025 — up from at least $237 million a year earlier — and more than 21,000 trades during the year.

The findings offer the clearest picture yet of who is handling Trump's portfolio and shed new light on the ties between hundreds of millions of dollars of the president's personal fortune and financial institutions.

CNBC found no evidence that the financial relationships influenced any government action or that Trump directed any specific transaction.

The Trump Organization told CNBC that outside financial institutions, not Trump, controlled the individual investment decisions. A spokesperson said the president's assets were placed in fully discretionary accounts that rely heavily on automated strategies to reduce potential conflicts of interest.

"There are no conflicts of interest," White House spokesperson Anna Kelly told CNBC when asked about Trump's banking.

Nevertheless, financial experts who spoke with CNBC said the arrangements put the firms in a sensitive position because they are tied to the wealth of a sitting president who can shape banking policy and regulation and who retains extensive domestic and foreign financial interests.

Ross Delston, a former FDIC banking regulator and lawyer who specializes in anti-money-laundering laws, said Trump's expansive global business interests, past legal and financial troubles and broad authority over the economy create "extraordinary" compliance and reputational risks for institutions — but also bring the prospect of substantial fees and potential access to the sitting president.

"It's quite remarkable to me that banks do seem to be interested in doing business with our president, given his history," Delston told CNBC. "They get access — access to the president of the United States. And that is known in my business as priceless."

Delston said, "The only way to view the president would be as an ultra-high-risk client from virtually every standpoint."

JPMorgan Chase did not respond to multiple detailed requests for comment about CNBC's findings and methodology. Stephens declined to comment.

A UBS spokesperson told CNBC in a statement that the bank had "no comment on this."

"As you know, we can't comment on client matters, regardless of whether a relationship exist or has ever existed," the spokesperson said.  

Inside the tradingDuring Trump's entire first term, he made roughly 500 trades, according to his earlier disclosures. In 2025, that figure exceeded 21,000, driven at least in part by the automated investment strategy the Trump Organization says the president uses.

The bulk of those trades were linked to Schwab, UBS and JPMorgan, according to a CNBC analysis comparing the volume and value of transactions associated with each account in the financial disclosure.

Of the firms identified, Schwab appears to have the most extensive involvement with Trump's money, based on value and trading volume.

CNBC linked the firm to Account No. 6, which held at least $163 million. The Wall Street Journal reported that Schwab manages a second account, Account No. 7.

According to the Journal, Account No. 7 held about $302 million and the disclosure shows it generated about 10,500 transactions in 2025 — nearly half of Trump's disclosed trades. It was far the busiest and included major positions in Apple, Microsoft and Nvidia.

"We have strict policies governed by regulation regarding client privacy and do not comment on any current or former clients," Schwab spokesperson Mayura Hooper said in a statement to CNBC. She declined to comment on accounts 6 and 7. "Schwab serves 46 million client accounts, across different backgrounds, political affiliations, professions and viewpoints — and we apply the same standards to every client relationship."

The size and activity of both accounts associated with Schwab would not necessarily be unusual for an ultrawealthy investor, said Larry Harris, a former chief economist at the Securities and Exchange Commission. Nor would Schwab be an unusual choice for such a portfolio, Harris told CNBC.

"This is typical for people with large portfolios, and Schwab can be cheaper and provide greater control over tax timing," said Harris, now a finance professor at the University of Southern California Marshall School of Business.

Trump's disclosure also showed that Schwab extended a pledged-asset line of credit of more than $50 million to his trust, allowing the trust to borrow against securities without selling them. The proceeds generally cannot be used to purchase additional securities.

Unlike other major banks such as JPMorgan and Capital One, Schwab was not among the institutions the Trump family accused of cutting ties with them after the Jan. 6 insurrection.

The JPMorgan-linked Account No. 8 was active around the same time Trump accused the bank of "debanking" him for political reasons.

Account No. 8 disclosed 336 trades worth up to roughly $5.5 million on Aug. 4, 2025, the day before Trump's complaints. It reported another 50 trades worth up to $785,000 on Aug. 7, when Trump signed an executive order on debanking, and continued reporting transactions through December.

CNBC calculated the totals via the reported value ranges of each transaction.

Trump later sued JPMorgan and CEO Jamie Dimon for $5 billion, alleging the bank closed accounts belonging to him and his businesses for political reasons and placed them on a banking "blacklist." JPMorgan did not respond to requests for comment but has previously denied the allegations and said the lawsuit has no merit.

The case remains pending, with no hearing or trial date scheduled as the court weighs whether to return it to Florida state court or transfer it to federal court in New York.

Other firms in addition to JPMorgan, Schwab and UBS appeared in narrower roles.

A Stephens-linked account, Account No. 5, held $1 million to $5 million in a bank-sweep program. The same account also held up to $66,001 in Stifel's FDIC-insured bank deposit program, which experts consulted by CNBC said was consistent with a residual balance left behind as the account moved from Stifel's program to the program at Stephens program.

Stifel did not respond to requests for comment.

Two of Trump's disclosed accounts, Nos. 4 and 8, also held Fidelity-branded mutual funds within broader portfolios that included large-cap stocks and municipal bonds.

"Based on the publicly disclosed materials, the president's accounts appear to include two Fidelity mutual funds," said a person with knowledge of the funds who asked not to be named because they were not authorized to speak publicly on the matter.

Who controls the tradesTrump has said his family oversees a trust while outside financial institutions control the investment decisions. But he hasn't named the firms.

"My kids run it," Trump said in a July 2 CNBC interview. "I've made a tremendous amount of money, more than I would have ever thought I would have made, and I let people invest it I don't even speak to."

Eric Trump wrote on X in May that the financial firms have "sole and exclusive authority over all investment decisions, including asset allocation, trading, rebalancing, and portfolio management."

A Trump Organization spokesperson told CNBC that, to reduce potential conflicts of interest, Trump's portfolio relies heavily on direct indexing, an automated investment strategy increasingly used by wealthy investors.

Rather than buying an index fund, a direct-indexing account holds individual stocks selected to track a benchmark such as the S&P 500. Software continually buys, sells and rebalances the holdings to keep the portfolio aligned with the index.

"This is computer-driven trading," said Harris, the former SEC chief economist.

The approach can produce large bursts of transactions during volatile markets, when price swings create more opportunities to rebalance holdings or sell depreciated stocks to reduce an investor's tax bill.

For example, Trump's disclosures show a wave of purchases around major tariff news. On April 2, 2025, Trump announced sweeping tariffs that sent stocks tumbling. He paused most of them a week later, sending markets sharply higher, though he imposed a sweeping new tariff regime last week.

CNBC found no evidence that Trump or his family directed the individual transactions, including anything in anticipation of the tariff decision.

"Given that you have trustworthy fiduciaries who are involved in the process," Harris said, "it's really unlikely that any game playing is in those organizations. It's almost impossible to imagine it."

Direct indexing can also lower an investor's tax bill through tax-loss harvesting. When one stock declines, the software can sell it to capture the loss and buy another security that preserves the portfolio's broader market exposure. Those losses can then offset capital gains elsewhere in the portfolio.

Rules and regulationsFederal ethics rules require that if a president is using a blind trust to manage holdings while in office, it be controlled by an independent trustee and sharply restrict communications with the beneficiary about the holdings.

By contrast, much of Trump's wealth remains in a revocable trust of which he is the sole beneficiary, according to SEC filings. Donald Trump Jr. serves as trustee and holds sole voting power over certain assets, according to an SEC filing. A revocable trust can generally be amended — such as by replacing the trustee or changing beneficiaries — or dissolved by the person who established it.

Every president from Jimmy Carter through Joe Biden, except Trump, either established blind trusts or limited their investments to assets generally considered unlikely to create conflicts, such as diversified mutual funds, according to the Office of Government Ethics. Biden's disclosures showed no individual stock holdings.

The public records do not show whether Trump has exercised any power to amend or revoke the trust.

That gap between control over individual trades and ultimate ownership also creates compliance and reputational risks for the financial institutions managing Trump's money, Delston said.

"Banks that take him on have made a calculus that all of the truckloads of baggage that he brings is still worthwhile, whether because of the fees they can collect or other benefits of the relationship," he said.

Banks would almost always treat a sitting president as a "politically exposed person," or PEP, under their internal risk frameworks because the office can carry heightened corruption and money laundering exposure, Delston said.

"PEPs are expected to be given enhanced scrutiny, both at the onboarding stage and periodically through monitoring of their activities," Delston said.

Under federal anti-money-laundering rules, banks must understand the purpose of the relationship, know what activity should normally be expected, develop a risk profile and monitor for suspicious transactions.

For a client such as Trump, Delston said, that can mean contemporaneous review of wire transfers, checks, securities trades and other transactions to determine whether they raise suspicious-activity concerns.

"It isn't just determining whether there is suspicious activity involved," Delston said. "His accounts at any financial institution would require real-time monitoring."

That level of scrutiny can require additional spending on compliance personnel, technology, lawyers and outside advisors. Banks serving a sitting president also face reputational and political risks, including public scrutiny over whether the relationship could affect their dealings with the administration.

CNBC could not determine how much the firms earned from Trump's accounts.

"Banks charge people like the president high fees in whatever they do, in order to make up for some of the risk," Delston said. "Whether the fees are ever high enough is unknowable."

Posted by Defense World Staff on Jul 25th, 2026

Arrowstreet Capital Limited Partnership lowered its stake in shares of The Charles Schwab Corporation (NYSE:SCHW – Free Report) by 10.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 2,952,078 shares of the financial services provider’s stock after selling 337,555 shares during the period. Arrowstreet Capital Limited Partnership owned 0.17% of Charles Schwab worth $277,436,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Souders Financial Advisors boosted its stake in Charles Schwab by 2.3% during the fourth quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider’s stock valued at $434,000 after buying an additional 98 shares during the period. Lantz Financial LLC increased its position in shares of Charles Schwab by 3.1% in the fourth quarter. Lantz Financial LLC now owns 3,243 shares of the financial services provider’s stock worth $324,000 after purchasing an additional 99 shares during the last quarter. Essex Financial Services Inc. raised its stake in Charles Schwab by 0.8% in the fourth quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider’s stock valued at $1,282,000 after purchasing an additional 105 shares in the last quarter. JFS Wealth Advisors LLC raised its stake in Charles Schwab by 0.4% in the fourth quarter. JFS Wealth Advisors LLC now owns 24,626 shares of the financial services provider’s stock valued at $2,460,000 after purchasing an additional 107 shares in the last quarter. Finally, FSM Wealth Advisors LLC lifted its position in Charles Schwab by 4.1% during the fourth quarter. FSM Wealth Advisors LLC now owns 2,688 shares of the financial services provider’s stock valued at $269,000 after purchasing an additional 107 shares during the last quarter. 84.38% of the stock is owned by institutional investors.

Charles Schwab News Roundup Here are the key news stories impacting Charles Schwab this week:

Positive Sentiment: Schwab announced a quarterly common stock dividend of $0.32 per share, along with preferred stock dividends, reinforcing its capital-return story for income-focused investors. Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends Positive Sentiment: Argus raised its price target on SCHW to $114 from $108 and kept a buy rating, signaling confidence in further upside. Argus raises Charles Schwab price target Positive Sentiment: Schwab was added to Zacks’ “Best Income Stocks to Buy” list, suggesting investors continue to view the company as an attractive income and quality financial-services name. Best Income Stocks to Buy for July 23rd Positive Sentiment: Recent coverage highlighted Schwab’s “dual beats” in its latest quarter, with earnings and revenue both coming in above expectations, adding to the bullish case after the July 21 report. Charles Schwab: Dual Beats And Attractive Preferreds Neutral Sentiment: Schwab also received media attention for its call for the CLARITY Act to pass, framing crypto regulation as a potential long-term industry catalyst, though the timing remains uncertain. Charles Schwab Calls CLARITY Act a Fundamental Catalyst Insider Transactions at Charles Schwab In related news, insider Jonathan S. Beatty sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $100.01, for a total value of $200,020.00. Following the transaction, the insider directly owned 13,738 shares of the company’s stock, valued at approximately $1,373,937.38. This represents a 12.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total value of $228,312.00. Following the sale, the director owned 177,508 shares in the company, valued at approximately $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 6,520 shares of company stock valued at $622,392. 6.30% of the stock is owned by company insiders.

Analyst Ratings Changes A number of research firms have commented on SCHW. Weiss Ratings reissued a “buy (b-)” rating on shares of Charles Schwab in a research note on Thursday, June 18th. BMO Capital Markets lowered Charles Schwab from an “outperform” rating to a “market perform” rating and set a $105.00 price target for the company. in a research note on Monday, July 20th. Citigroup reiterated a “market outperform” rating on shares of Charles Schwab in a report on Wednesday. Jefferies Financial Group cut their target price on Charles Schwab from $122.00 to $118.00 and set a “buy” rating for the company in a research note on Monday, April 6th. Finally, TD Cowen increased their price target on shares of Charles Schwab from $108.00 to $109.00 and gave the company a “buy” rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $119.76.

Read Our Latest Stock Analysis on SCHW

Charles Schwab Stock Performance Shares of SCHW opened at $101.92 on Friday. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48. The stock has a market cap of $177.25 billion, a P/E ratio of 18.53, a P/E/G ratio of 0.82 and a beta of 0.77. The business’s 50 day moving average price is $93.93 and its 200-day moving average price is $95.39. The Charles Schwab Corporation has a 52 week low of $83.96 and a 52 week high of $107.50.

Charles Schwab (NYSE:SCHW – Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.56 by $0.06. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.The company had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same quarter last year, the company earned $1.14 EPS. The firm’s revenue for the quarter was up 20.9% on a year-over-year basis. Equities research analysts anticipate that The Charles Schwab Corporation will post 6.43 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, August 14th. Charles Schwab’s dividend payout ratio is 23.27%.

Charles Schwab Company Profile (Free Report)

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

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Charles Schwab delivered strong fiscal 2026 second quarter earnings, with revenue up 20.9% and adjusted EPS up 42% year-over-year. Core net new assets ramped up 49% to $119.8 billion, with total client assets reaching $13.1 trillion and record trading volumes. SCHW raised 2026 revenue growth guidance to 17.5% to 18.5% as the company looks set to launch a prediction market product.

WESTLAKE, Texas--(BUSINESS WIRE)--Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends.

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If you own a Roth IRA, you own the same tax shelter Peter Thiel used to turn $2,000 into roughly $5 billion. This is the exact same account type, governed by the exact same tax code, sitting in millions of ordinary brokerage logins right now. The buried feature: a Roth IRA can hold far more than index funds. It can hold private startup shares, LLC interests, real estate, and other alternative assets, and every dollar of growth comes out tax-free after age 59½.

The Loophole Hiding in Your Retirement Account Thiel’s trick, first exposed by ProPublica in June 2021 using leaked IRS files, was not exotic. In 1999 he opened a Roth, funded it with about $2,000, and used that cash to buy founders shares of PayPal (NASDAQ:PYPL | PYPL Price Prediction) at fractions of a penny each. When PayPal exploded, the gains landed inside the Roth. Tax-free. He later repeated the move with Palantir (NASDAQ:PLTR) and Meta Platforms (NASDAQ:META) stakes. As long as he waits until April 2027, six months before his 60th birthday, he pays zero federal tax on the withdrawal.

The vehicle that made this legal is the self-directed Roth IRA. A regular Roth at Fidelity or Charles Schwab (NYSE:SCHW) limits you to publicly traded securities. A self-directed Roth, held at a specialty custodian, lets you invest the account in almost anything the tax code does not explicitly forbid.

The Statute That Makes It Real Roth IRAs were created by the Taxpayer Relief Act of 1997 and codified at Internal Revenue Code Section 408A. Nothing in 408A restricts holdings to stocks and bonds. The only forbidden assets under IRC Section 408(m) are life insurance and most collectibles. Private company stock, LLC units, private credit, and real estate are all allowed. The IRS confirms this directly in Publication 590-A.

Who Actually Qualifies To contribute directly in 2026, your modified adjusted gross income has to sit under $153,000 if you file single or $242,000 if married filing jointly. The annual contribution cap is $7,500, or $8,600 if you are 50 or older (the $1,100 catch-up). Earn above the phase-out and you are shut out of direct contributions, though the backdoor Roth conversion remains open at any income level. You need earned income at least equal to what you contribute.

How to Actually Do This Open a self-directed Roth IRA with a custodian that handles alternative assets (Equity Trust, IRA Financial, Rocket Dollar, and Alto are the largest names). A standard brokerage Roth will not work. Fund the account with your 2026 contribution of up to $7,500 (or $8,600 at age 50+), or roll in an existing IRA balance. Direct the custodian to buy the private asset, whether that is founder shares in a startup you have no active role in, an LLC interest, or a rental property. The custodian, not you, must take title. Let the position grow inside the account. Dividends, interest, and capital gains all compound tax-free. Wait until you are 59½ and the account has been open at least five tax years. Withdraw. Owe nothing. The Trap That Ends the Party Here is the fine print that took down countless would-be Thiels. Internal Revenue Code Section 4975 bans “prohibited transactions” between your IRA and any “disqualified person,” which includes you, your spouse, your parents, your children, and any company you already control. You cannot sell your own startup shares to your Roth. You cannot have the Roth invest in a business where you draw a salary. You cannot pay yourself for managing a Roth-owned rental. Trip this wire and the entire account is deemed distributed on January 1 of that year, triggering ordinary income tax on the full balance plus a 10% penalty if you are under 59½. The Tax Court has enforced this ruthlessly.

Two more traps: shares purchased inside the Roth must be valued at fair market value at the time of purchase (a sweetheart penny-per-share price on stock already worth $10 invites an IRS audit), and the five-year holding rule applies separately to each Roth conversion. Congress has floated caps on mega-Roths repeatedly since the ProPublica story broke, most recently in the failed Build Back Better bill. As of July 2026, no cap has passed. The door is still open. Your account already has the key.

Contact [email protected] for any questions or corrections.

Key Takeaways SCHW added 1.4 million brokerage accounts and $120 billion in core net new assets in Q2.Management raised the 2026 revenue growth outlook to 17.5-18.5% on stronger momentum.SCHW is integrating AI tools to personalize client interactions and boost efficiency. The Charles Schwab Corporation (SCHW - Free Report) emphasized continued client expansion, deeper relationships and technology investments during its second-quarter 2026 earnings call. Management focused on broadening Schwab’s role across investing, wealth, banking and lending while highlighting a diversified revenue model.

Executives also raised their full-year outlook, citing stronger business momentum, higher trading activity and improving operating leverage. The discussion centered on growth opportunities, artificial intelligence (AI), and the company’s ability to serve evolving investor needs.

SCHW Expands Client Growth StrategyCEO, president and director Richard Wurster said that SCHW continued to see strong client engagement, with second-quarter results supported by new accounts, asset gathering and deeper relationships. The company added 1.4 million brokerage accounts and generated $120 billion in core net new assets during the quarter.

Wurster highlighted growth across wealth and lending offerings, noting that managed investing net flows increased 53% year over year, while bank lending balances reached $67 billion, up 33%. He said Schwab’s strategy remains focused on helping clients consolidate more of their financial lives on one platform.

The company reported adjusted earnings per share (EPS) of $1.62, exceeding the Zacks Consensus Estimate of $1.53. Revenues totaled $7.07 billion, surpassing the Zacks Consensus Estimate of $6.89 billion.

The Charles Schwab Corporation Price, Consensus and EPS SurpriseSchwab Pushes Wealth & Banking GrowthSchwab said that its wealth opportunity remains significant as more investors seek financial guidance. Wurster said only a small portion of retail clients currently use fee-based advice solutions, creating room for growth through expanded planning, tax and trust capabilities.

Wurster also pointed to lending as a key relationship-building opportunity. He noted that pledged asset line adoption has grown and said increasing lending penetration could strengthen both client relationships and revenue diversification.

CFO Michael Verdeschi said bank loan balances grew to $67 billion, while margin balances reached $165.1 billion. He added that increased lending activity supported revenue growth and improved the company’s business mix.

SCHW Advances AI & New CapabilitiesSCHW management continued to emphasize AI as a tool to enhance client experiences and operating efficiency. Wurster said AI is being integrated across the company’s platform to personalize interactions and support scalable growth.

The company highlighted new capabilities, including Portfolio Insights and progress on Schwab Assistant. Wurster said developer productivity improved 15-20% over the past year as AI tools became more embedded in operations.

SCHW also discussed expansion into emerging investment areas. Management said Schwab Crypto is progressing as planned, with transfer capabilities expected to enter pilot testing, while the Forge acquisition is intended to expand private market access.

Schwab Updates 2026 Financial OutlookSchwab raised its expectations for 2026 revenue growth, with Verdeschi saying the company now expects total revenue growth of 17.5-18.5%. Management also expects full-year net interest margin expansion to 3-3.10%.

Verdeschi said the updated 2026 outlook reflects stronger equity markets, continued asset gathering and increased trading activity. The company raised its full-year daily average trade assumption to 10.6 million while expecting some moderation from recent elevated levels.

The CFO added that expense growth expectations increased to 9.5-10.5%, driven by volume-related costs and the inclusion of Forge. He said underlying expense growth expectations remained consistent with prior targets.

SCHW Addresses Trading Activity QuestionsDuring the Q&A session, a Piper Sandler analyst asked about the sustainability of record trading activity. Wurster said SCHW views higher engagement as being supported by broader participation, younger investors, options adoption and increased use of AI in investing decisions.

Wurster also mentioned that market interest in areas such as artificial intelligence, major technology themes and new investment opportunities has contributed to elevated engagement. He emphasized that trading activity was not solely driven by short-term market conditions.

A Jefferies analyst questioned the durability of net new asset trends. Wurster said management remains confident in long-term organic growth of 5% or higher, supported by advisor services, wealth offerings and workplace opportunities.

Schwab Maintains Long-Term FocusSchwab’s leadership continued to frame the business around scale, diversification and client relationships. Wurster said the company is investing in branches, financial consultants, advisor support and technology while using its platform breadth to serve different client needs.

Management highlighted that record revenues of $7.1 billion and adjusted EPS of $1.62 reflected strength across multiple businesses, including net interest revenues, asset management fees and trading revenues.

The company enters the remainder of 2026 focused on expanding wealth, banking and investing capabilities while maintaining capital discipline. Verdeschi said Schwab’s diversified model supports continued earnings growth across market environments.

Zacks Rank & Style SignalsSCHW carries a Zacks Rank #2 (Buy), which indicates favorable earnings estimate revision trends and places the stock among the higher-rated stocks in the Zacks Rank system. The Zacks Rank can change as analysts update earnings estimates following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock’s Style Scores include a Value Score of C, Growth Score of D, Momentum Score of A and VGM Score of C. Zacks Style Scores are designed to complement the Zacks Rank, with higher grades generally reflecting stronger characteristics within each investment style.

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