After the crushing market lows and extreme volatility driven by the Covid crisis had subsided, self-directed brokerage account balances with Charles Schwab ultimately ended 2020 with a bang.

The average account balance for SDBA plan participants as of the fourth quarter was $331,664, a 13% year-over-year increase and a 10% increase from the third quarter, according to the company. Furthermore, average account balances finished the year up 31% compared to the lows they experienced at the end of the first quarter of 2020.

Participants continue to put most of their assets into equities (35%), up from 29% in the fourth quarter of 2019. Mutual funds were the second largest holding at 31%, followed by exchange-traded funds (18%), cash (14%) and fixed income (2%).

Information technology remained the largest equity sector holding at 30%, down slightly from 31% in third quarter. Apple continues to be the top overall equity holding with 12% of the equity allocation of portfolios, followed by Tesla (7%), Amazon (6%), Microsoft (3%) and Berkshire Hathaway (1%).

Allocations to mutual funds remained consistent throughout 2020, with the largest allocations (32%) going to large-cap funds, followed by taxable bond (20%) and international (16%) funds.

As for ETFs, investors allocated the most dollars to U.S. equity (49%), followed by U.S. fixed income (15%), sector ETFs (13%) and international equity (12%).

The report showed that trading volumes were mostly unchanged from the previous quarter, at an average of 13.9 trades per account in the fourth quarter, up slightly from 13.6 trades in the earlier quarter. It also noted that participants made the most trades in their equity holdings, followed by ETFs and mutual funds.

The report also showed that Gen X had the most participation in SDBA accounts with about 44%, followed by baby boomers (34%) and millennials (16%).

Boomers had the highest SDBA balances at an average of $493,129, followed by Gen X at $282,494 and millennials at $94,872.
And millennials continue to be the least interested (12%) in advised accounts. Gen X had the most advised accounts at 47%, followed by boomers (38%).

Additionally, the report noted that advised accounts hold higher average account balances compared to non-advised accounts ($517,849 versus $288,513).