MutualFundWire.com: A Fund Supermarket's Revenue Dips to $320MM, But ...

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Friday, July 18, 2025

A Fund Supermarket's Revenue Dips to $320MM, But ...

A publicly traded brokerage's fund supermarket's revenue slipped a bit last quarter, even as the firm's proprietary asset management business grew.

Richard A. "Rick" Wurster
The Charles Schwab Corporation
President, CEO

This morning, the team at the Charles Schwab Corporation (SCHW) released the Westlake, Texas-based company's earnings report for the second quarter of 2025. In that report, among lots of other data*, the Schwab team offers some updates about their fund supermarket and about Schwab Asset Management's [profile] proprietary funds. Those proprietary funds accounted for 9.6 percent of the whole company's $5.851 billion in Q2 2025 revenue, while the fund supermarket accounted for 5.5 percent.

Schwab's supermarket brought in $218 million in Q2 2025 revenue from Mutual Fund OneSource and other third-party NTF (no-transaction-fee) funds, down by $4 million quarter-over-quarter from Q1 2025 but up by $4 million year-over-year from Q2 2024. In Q1 2025, 3rd party NTF funds had an average AUM of $350.487 billion on Schwab's platform (down by $9.209 billion Q/Q but up by $12.289 billion Y/Y), and Schwab charged those funds an average fee of 25 basis points.

As for non-NTF funds and ETFs, Schwab's supermarket brought in $102 million in Q2 2025 revenue, down by $1 million Q/Q but roughly unchanged Y/Y. In Q2 2025, 3rd party non-NTF mutual funds and ETFs had an average of $603.509 billion in AUM on Schwab's platform (down by $20.138 billion Q/Q but up by $2.607 billion Y/Y), and Schwab charged those funds an average fee of 7bps.

Thus, Schwab's total 3rd party fund supermarket business generated $320 million in Q2 2025 revenue (down by $5 million Q/Q but up by $4 million Y/Y) and had an average Q2 2025 AUM of $953.996 billion.

Meanwhile, Schwab Asset Management's proprietary fund business grew last quarter, driven largely by the firm's money market funds. Schwab's proprietary money funds generated $442 million in Q2 2025 revenue, up by $24 million Q/Q and up by $85 million Y/Y. In Q2 2025, Schwab's money funds held an average of $644.811 billion in AUM (up by $23.337 billion Q/Q and up by $121.146 billion Y/Y), and Schwab charged those funds an average fee of 27bps.

As for Schwab's other proprietary funds — including bond funds, CITs, equity funds, and ETFs — they generated $122 million in Q2 2025 revenue, roughly unchanged Q/Q but up by $10 million Y/Y. In Q2 2025, Schwab's proprietary non-money market funds had an average of $661.793 billion in AUM (up by $3.205 billion Q/Q, up by $95.945 billion Y/Y), and Schwab charged those funds an average fee of 7bps.

Thus, Schwab's total proprietary fund business generated $564 million in Q2 2025 revenue (up by $24 million Q/Q, up by $95 million Y/Y) and had an average Q2 2025 AUM of about $1.307 trillion.

*Our sister publication 401kWire highlighted data on the growth of Schwab's retirement plan business.

Printed from: MFWire.com/story.asp?s=70169

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