By Barron's Advisor Staff
Charles Schwab is increasing the minimum investible-asset levels for clients to participate in the Schwab Advisor Network, or SAN. That is the program through which the firm refers clients to third-party registered investment advisors who use Schwab's custody platform. The changes will take effect early next year and limit eligibility to clients who plan to invest $2 million or more with a participating Schwab-affiliated independent advisor.
Among other most-read wealth management articles this week:
Three interest-rate mistakes . Investors once again find themselves in the midst of a Federal Reserve rate-lowering cycle. On Sept. 17, the Fed lowered the federal-funds rate by a quarter point and signaled that two more cuts are likely by year end. In lower-rate environments, investors can be tempted by higher-yielding options. Our contributor describes three ways that reaching for yield can add unnecessary risk to a portfolio.
Trading surge lifts Schwab earnings . Charles Schwab is reaping the benefits of a bull market that is driving investor enthusiasm for stock trading and investing. The company's third-quarter results came in stronger-than-expected and showed robust growth in account openings and trading volumes. The company says net new assets, an important growth metric, jumped 44% year over year in the third quarter.
Bullish on small-caps and defense . Dryden Pence, chief investment officer at Pence Wealth Management, expects strong earnings and lower interest rates this year to lift the S&P 500 index and benefit smaller stocks. He outlines the sectors he favors in Barron's The Way Forward podcast. His investment strategy involves focusing on human behavior to predict consumption patterns and identify companies with pricing power, which are the ones likely to post consistent earnings growth.
Wall Street warms to crypto . Cryptocurrencies continue to go mainstream. Large banks including Citigroup and Morgan Stanley are increasingly embracing them. Citigroup is working on plans to custody digital assets, while Morgan Stanley advisors can now pitch crypto to all clients, not just a limited group. These announcements come as several other banks push for greater cryptocurrency integration.
Next-Gen advisors want equity stakes . Many young advisors aren't excited to wait years to be awarded ownership stakes in their firms. To keep them happy, some registered investment advisor firms are getting creative. There are many options for equity structures, including a profits-interest program that gives owners the right to receive a percentage of future profits, and phantom equity, which mimics actual stock ownership without granting real equity or ownership rights.
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October 17, 2025 15:36 ET (19:36 GMT)
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