Retirement plan participants increased trading activity and equity investments through self-directed brokerage accounts in the third quarter, according to data published in Charles Schwab Corporate Services' most recent SDBA Indicators report. "Overall trading activity reached its highest level in nearly three years as SDBA users directed investments toward equities, continuing a trend that began in the second quarter," said Jim McCool, senior vice president, Charles Schwab Corporate Services, Cleveland.
According to Schwab, equities made up 29% of total participant SDBA assets, up from 26% in the second quarter. Assets in fixed income vehicles and cash dropped to a combined 30% in the third quarter from 35% in the second quarter. Participants conducted an average of 2.82 trades per account during the quarter.
The SDBA Indicators report profiles the investment behavior of approximately 65,000 401(k) plan participants investing through Schwab's self-directed brokerage account.