“We expect it will grow more rapidly as clients continue to learn about it.”

In context

“they can use for part of their portfolios. The acquisitions -- acquisition of Wasmer Schroeder Strategies is a clear example of a win-win opportunity for both clients and our firm. We brought down the cost of access to fixed income managed accounts on our platform and flows have moved to Schwab. The strategies have attracted over $5 billion in net flows over the last 2 years. This includes $1 billion in net flows in the third quarter alone, the highest quarterly net flows we’ve seen since launching these strategies on the retail platform in January of ‘21. Another investment solution I’ll highlight briefly is Schwab Personalized Indexing. We are still in the early days, and our efforts are focused on educating clients in the field about the potential benefits direct indexing can provide. We expect it will grow more rapidly as clients continue to learn about it. Moving along the continuum, we’re also meeting client needs with our 2 full-service wealth offerings, Schwab Wealth Advisory and Schwab Advisor Network, or SAN. Despite a challenging market environment, clients are highly engaged. Both Schwab Wealth Advisory and SAN attracted strong quarterly net flows in the third quarter at $2.6 billion and $5.2 billion, respectively. This is an opportunity for win-win monetization as it is an area where we are investing in the client experience and have several levers to improve our economics. First, we believe there’s an opportunity to attract more clients to the programs, particularly at Ameritrade, where less than 7% of assets are engaged in advice, and we have already seen 40% of Ameritrade FCs enroll a client in Schwab Wealth Advisory and over 80%”