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When I think about fund companies, I know Schw has a lot of client assets but wonder how much is in Schwab OEFs / ETFs? I only use one of their funds: SCHD.
I think about TROW more as a fund company and less as a brokerage.
"SCHW is only off 14% YTD if my CNBC app is to be believed. "
@hank- Yes, I'm using the WSJ for the charting, and ran it again- now it also says about 14%. Maybe I did something stupid, because the new graph looks much different than the last one. Probably operator error.
SCHW did rise last January, then from March through July while the performance was better than TROW and ASML, it did begin roughly following their decline. Then in the middle of August begins quite a diversion on the curves- SCHW heading upwards and the other two almost in lockstep downwards. Beyond my pay grade- I'm not a chartist in any sense of the word.
Perhaps Wall Street thinks Schwab's bank will see increased earnings from commercial loans due to a rise in interest rates. AFAIK, TROW doesn't have its own bank.
I was moved by all this to reread the June 18 feature piece in Barron’s in which they recommend investing in any of 5 money managers they covered. All were down 30-40% back than. About where they are today. Blackrock & TRP headed their list of favorites. Just interesting to mull. No need to do anything while the bricks fall. Certainly cash has outshined most other investments this year.
Last few lines of Pete Seeger’s “Turn! Turn! Turn!” might apply to investing.
To Everything (Turn, Turn, Turn) There is a season (Turn, Turn, Turn) And a time for every purpose, under Heaven
A time to gain, a time to lose A time to rend, a time to sew A time to love, a time to hate A time for peace, I swear it's not too late
Schwab fund AUM is $610 billion, decent but not huge. Schwab has hesitated in growing its fund business so as not to be in conflict with its RIA platform. It has focused on indexed and differentiated fund products (fundamental-funds, etc).
Schwab Bank is profitable. In fact, Schwab relies on higher % of cash allocation that is held at Schwab Bank to offer its "no-fee" robo-advisor. It was fined for too aggressive marketing of these - it paid fines and made some minor ad changes. It also offers a flat-fee version of robo-advisor.
Thanks, Yogi, for the additional color. Most fund companies have very high dividend (albeit variable) yields. Schwab's div yield (1.25%) is well below that of SPY, not to mention XLF. I am not sure comparing Schwab stock performance with other fund companies stock is appropriate, given its low AUM, low margin fund business, but I do not know what is an appropriate comparison for Schwab as i have not looked into the drivers of its financials statements.
Schwab bank is certainly a high way robbery and Schwab brokerage facilitates the bank with no sweep MM funds.
Comments
I think about TROW more as a fund company and less as a brokerage.
@hank- Yes, I'm using the WSJ for the charting, and ran it again- now it also says about 14%. Maybe I did something stupid, because the new graph looks much different than the last one. Probably operator error.
SCHW did rise last January, then from March through July while the performance was better than TROW and ASML, it did begin roughly following their decline. Then in the middle of August begins quite a diversion on the curves- SCHW heading upwards and the other two almost in lockstep downwards. Beyond my pay grade- I'm not a chartist in any sense of the word.
I was moved by all this to reread the June 18 feature piece in Barron’s in which they recommend investing in any of 5 money managers they covered. All were down 30-40% back than. About where they are today. Blackrock & TRP headed their list of favorites. Just interesting to mull. No need to do anything while the bricks fall. Certainly cash has outshined most other investments this year.
Last few lines of Pete Seeger’s “Turn! Turn! Turn!” might apply to investing.
To Everything (Turn, Turn, Turn)
There is a season (Turn, Turn, Turn)
And a time for every purpose, under Heaven
A time to gain, a time to lose
A time to rend, a time to sew
A time to love, a time to hate
A time for peace, I swear it's not too late
Schwab Bank is profitable. In fact, Schwab relies on higher % of cash allocation that is held at Schwab Bank to offer its "no-fee" robo-advisor. It was fined for too aggressive marketing of these - it paid fines and made some minor ad changes. It also offers a flat-fee version of robo-advisor.
https://www.schwabassetmanagement.com/about
Schwab bank is certainly a high way robbery and Schwab brokerage facilitates the bank with no sweep MM funds.