Charles Schwab (SCHW)

$49.70 0.05 (0.10%)

17:00 EST SCHW Stock Quote Delayed 30 Minutes

Volume:

Previous Close -

Market Cap 67.05B

PE Ratio 28.08

EPS 1.77

Volume (Avg. Vol.) 4.63M

Day's Range 49.46 - 50.09

52-Week Range 28.00 - 51.65

Dividend & Yield 0.46 (0.93%)

SCHW Stock Predictions, Articles, and Charles Schwab News

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5 Cheap Dividend Stocks To Buy For Healthy Yields and Huge Upside

By Mark R. Hake, CFA Jul 7, 2020

These 5 cheap dividend stocks to buy have high potential upside, reasonable price-to-earnings ratios and yields of 3% or greater.

3 Big Stock Charts for Friday: AT&T, Broadcom, and Charles Schwab

By David Moadel, InvestorPlace Contributor Apr 17, 2020

Friday's big stock charts feature names that were indecisive but might be coiling for a swift move soon.

Charles Schwab Earnings: SCHW Stock Sinks 4% on Q1 EPS Miss

By William White, InvestorPlace Writer Apr 15, 2020

Charles Schwab (SCHW) earnings for the banking company's first quarter of 2020 have SCHW stock heading lower on Wednesday.

3 Big Stock Charts for Friday: General Motors, Charles Schwab, and LyondellBasell

By Vince Martin, InvestorPlace Contributor Jan 24, 2020

Friday's 3 big stock charts feature value plays whose technical setups suggest the potential for material near-term moves.

Earnings: Big Banks Are on Pace for a Solid 2020

By Patrick Sanders, InvestorPlace Contributor Jan 14, 2020

Bank stocks are reporting Q4 earnings starting this week, but investors should be paying more attention to 2020 guidance. Here's what to look for.

Stock Market Today: Sell Ford, Buy Tesla?; More Records

By Bret Kenwell, InvestorPlace Contributor Jan 2, 2020

The market surged to new highs and Tesla has a new Street-high price target. Here's what else happened in the stock market today.

Stock Market Today: Shakeup for Alphabet; JetBlue Merger?

By Bret Kenwell, InvestorPlace Contributor Dec 4, 2019

Alphabet's CEO is stepping down. So is Expedia's leader. Here's what else happened in the stock market today.

Stock Market Today: Merger Monday; Tesla’s Cybertruck Pre-Orders

By Bret Kenwell, InvestorPlace Contributor Nov 25, 2019

Tesla hit 200,000 pre-orders and there was a bevy of M&A to report. Here's what happened in the stock market today.

What the Fintech Merger Mania Means for Charles Schwab Stock

By Dana Blankenhorn, InvestorPlace Contributor Nov 22, 2019

Charles Schwab is trying to buy TD Ameritrade to afford the tech improvements needed to compete with cloud-based players like Robinhood.

Stock Market Today: The Deals Are Getting Done

By Bret Kenwell, InvestorPlace Contributor Nov 21, 2019

Charles Schwab to purchase TD Ameritrade? Let's look at all of the M&A news making noise in the stock market today.

3 Big Stock Charts for Wednesday: Facebook, Charles Schwab, and JPMorgan Chase

By Vince Martin, InvestorPlace Contributor Oct 16, 2019

Three big stock charts for Wednesday include two post-earnings movers - and FB stock, who could show the way for large-cap tech.

This Employee Benefits Push Could Pay off Big for BAC Stock

By James Brumley, InvestorPlace Feature Writer Oct 7, 2019

Its expanded interest in 401k plans and other employee-oriented business doesn't move the needle for BAC stock, though Bank of America could turn it into something lucrative in the distant future.

Disappointed by WeWork? Check Out These IPO Stocks.

By InvestorPlace Staff Oct 4, 2019

WeWork certainly isn't one of the hottest IPO stocks of 2019. But Matt McCall knows which names are. Tune in to 'Moneyline' for more.

Stock Market Today: Stocks Bounce Ahead of Jobs Report

By Bret Kenwell, InvestorPlace Contributor Oct 3, 2019

Here's what happened in the stock market today, as equities posted a strong bounce after an early morning flush.

3 Big Stock Charts for Wednesday: Twitter, Valero Energy and Synchrony Financial

By James Brumley, InvestorPlace Feature Writer Oct 2, 2019

The stock charts of TWTR, VLO and SYF are moving into the midpoint of the week in curious technical situations.

Stock Market Today: Cracks Show as Stocks Teeter

By Bret Kenwell, InvestorPlace Contributor Oct 1, 2019

Free commissions rocked a number of retail-investor brokerage firms on Tuesday. Here's what else happened in the stock market today.

5 Top Stock Trades for Wednesday: FB, AVGO, SCHW

By Bret Kenwell, InvestorPlace Contributor Oct 1, 2019

Facebook, Broadcom, Charles Schwab, TD Ameritrade and Stitch Fix were our top stock trades to watch on Wednesday.

Friday’s Vital Data: Charles Schwab, Square and Alibaba

By Tyler Craig, Tales of a Technician Aug 2, 2019

Options trading was buzzing in Schwab, Square and Alibaba on Thursday. Here are the metrics that matter moving forward.

Charles Schwab Earnings: SCHW Stock Jumps on Better-Than-Expected Q2

By William White, InvestorPlace Writer Jul 16, 2019

Charles Schwab earnings for the company's second quarter of the year has SCHW stock on the rise Tuesday with an EPS and revenue beat.

Charles Schwab News: SCHW Stock Pops on Possible USAA Deal

By Karl Utermohlen, InvestorPlace Writer Jul 15, 2019

Charles Schwab (SCHW) stock gained slightly on Monday afternoon as the company is in talks to acquire Texas-based USAA for about $2 billion.

(Bloomberg) -- When the world’s most-famous electric car maker finally joins the S&P 500, it will be bitter-sweet for investors with about $11 trillion in funds tied to the gauge. Their benchmark-hugging bets get some Elon Musk magic at last, but they pay seven-times last year’s price for the privilege.Given the chance, how many would have added Tesla Inc. to their index exposure in January? Or even June, when the shares had merely doubled?Customization is at the heart of a red-hot investing strategy driving two of the biggest deals in asset management this year. Known as direct indexing, it blurs the line between stock-picking and benchmark-following and now commands about $300 billion after its popularity surged in recent years.The idea is simple: Instead of buying shares in a fund that slavishly holds all the companies in an index, investors buy those stocks directly. The index exposure is broadly the same, but the investors are no longer wedded to it. They can make tweaks -- like adding a skyrocketing automaker well ahead of the S&P 500, for example.“The Tesla issue of the last few months is probably highlighting for the first time to a lot of people that the S&P is not the largest 500 companies,” said Elya Schwartzman, founder of ES Investment Consulting LLC. With direct indexing, “you can just create your own index and say, look I want the largest 600 companies by U.S. market capitalization,” he added.Direct indexing is a modern twist on separately managed accounts, which have been around for years and are used to build bespoke portfolios for wealthy individuals. The age of zero-commission trading and growing use of fractional shares means similar strategies can now be deployed for smaller investors.It remains a nascent part of the asset-management industry, but the buzz is building. Morgan Stanley’s $7 billion purchase of Eaton Vance Corp. is all about direct indexing -- the latter’s Parametric Portfolio Associates is the largest provider in the field. BlackRock Inc. this week announced a $1 billion takeover of Aperio, a creator of tailored index strategies.The ESG EffectAs dramatic as the Tesla example is, the real selling point for direct indexing may turn out to be the ability to remove companies from a portfolio’s exposure rather than add them.In the drive toward investments that meet environmental, social and governance criteria -- which also happens to be one of the tailwinds for Tesla -- huge disagreements exist over exactly what qualifies. Direct indexing allows an investor to make adjustments according to his or her own views, and remove companies not up to scratch.Read more: Record Flows Pour Into ESG Funds as Their ‘Wokeness’ Is Debated“Having this additional need for customization is really where we get involved,” said Jeff Brown, director of institutional portfolio management for Parametric. “If I want market exposure, there are quick easy ways to get it through an ETF, but if I want to customize in any way, shape or form that doesn’t exist in the ETF space, that’s where we can step in to fill that gap.”That kind of flexibility comes with a price, however. While fierce competition among brokers and asset managers has driven down trading costs across the industry -- boosting direct-indexing products in the process -- they still typically charge about 0.15%-0.35%.That’s less than an active mutual fund, but three to five times the price of some equity exchange-traded funds. The fee for the Vanguard Total Stock Market ETF (VTI) is just 0.03%, for example.“If direct indexing is going to experience another leg of growth, it’s going have to fan out further to the mass affluent market,” said Ben Johnson, Morningstar’s global director of ETF research. “It’s going to have to be achievable at a lower entry point.”Until recently, direct indexing tended to be the preserve of high net-worth individuals, according to Tom O’Shea, director of managed accounts at Cerulli Associates.The investing approach offers a huge tax benefit because investors have more losses which they can use to offset gains. ETFs famously do this as well, but direct indexing lets an investor utilize it at an individual stock level, which is estimated to add between 1 and 2 percentage points a year to returns.Making the most of that traditionally required a large number of securities owned outright, putting it out of reach of the average investor. But improving technology and fractional shares offered by brokerages like Charles Schwab Corp. and Robinhood are changing things.“You’re able to do the same thing with a smaller portfolio,” said O’Shea. “You can have 200 securities, but you don’t have to have as much money.”Deal MakerA recent study from Cerulli found that 67% of asset-management firms believe direct indexing presents the most-immediate opportunity to manage for both tax and ESG factors, so it’s no surprise to see big names making moves in the industry.The world’s largest asset-manager, BlackRock, said in its third-quarter earnings call that it plans to invest heavily in its separately managed account business. The Aperio purchase will bring its assets in that area to more than $160 billion, the company said.Alongside that and Morgan Stanley’s deal for Eaton Vance, Charles Schwab acquired a firm called Motif this year that offers direct indexing. Schwab CEO Walt Bettinger II has said the strategy will play an important role in the future of the company.Yet there remains plenty of skepticism that growth can meaningfully accelerate.Even customizing to include the surging Tesla ahead of the S&P 500 can’t beat the pure cost-efficiency of an ETF, according to Morgan Barna, an analyst for Bloomberg Intelligence.VTI, which includes Tesla, has only delivered fractionally better performance this year than State Street’s SPDR S&P 500 ETF Trust. Meanwhile, for all the hype, the ESG investing phenomenon remains in its infancy.That could be one reason why industry leader Parametric’s direct-indexing inflows total only $15 billion for the past year, while inflows to the ETF business at BlackRock -- the largest issuer in the space -- total $126 billion, according to data compiled by Bloomberg.“The incremental return would have to be much higher from the sum total of your custom choices to make it worth it,” said Barna. “People who felt really strongly either bought Tesla directly outside their index exposure” or bought a broader ETF, where the car maker was included, she said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Charles Schwab (SCHW)

SCHW Stock Predictions, Articles, and Charles Schwab News

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