Q2 2021 Retail Client Sentiment Report

Methodology: • This data is collected quarterly via an online survey among clients with Retail Assets of at least $2,000. • Note: There is oversampling in order to achieve adequate sample sizes for sub-group analysis, and then application of a weighting scheme to create a total respondent population that is representative of Schwab’s client base. Counts noted below are prior to weighting to show the sample sizes used for the subgroup analysis. • Q2 study was fielded at the beginning of the quarter: April 6-15, 2021

Gender Affluence Active Trader Male 840 (69%) HNW ($1M+) 225 (19%) Active 293 (24%) Female 309 (26%) Affluent ($250K-<$1M) 253 (21%) Not Active 919 (46%) No answer 463 (5%) Foundational (<$250K) 734 (61%) Life Stage Financial Consultant Employment Status Younger Investor (<40) 184 (16%) Relationship Employed full-time 528 (44%) Mid-Life (40-55) 305 (26%) Has Financial Consultant 241 (20%) Employed part-time 32 (3%) Mature (55+ not retired) 318 (27%) Does not have Financial 971 (80%) Self-employed 101 (8%) Retired 372 (32%) Consultant Retired/semi-retired 445 (37%) Other 68 (6%) No answer 38 (3%)

Sample sizes for respondents who were asked the Investment Sentiment section of the survey (n=1,212)

Q2 bullish market sentiment hits highest point since Schwab started tracking in 2013; COVID-19 begins to subside as top concern among investors

Key themes • Sentiment around the stock market continues to improve since last quarter; 54% now feel bullish compared to 48% in Q1 2021 • Market sentiment among younger investors is highest of any age group with 61% feeling bullish • Investors feel more confident that now is a good time to invest than they have in the past 12 months • Market and economic worries overtake COVID-19 and the political climate as biggest investor concerns • Travel and dining out at restaurants top investors’ post-COVID spending plans

©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 3 Q2 bullish market sentiment hits highest point since Schwab started tracking in 2013 Outlook For U.S. Stock Market (Single response only; among total sample)

80% 48% 54% 44% 42% 42% 40% 43% 33% 36% 36% 29% 33% 60% 27% Bullish Net 35% I think the market will continue to 40% 32% perform well, and I feel like my 30% 29% 34% portfolio is well-positioned to grow Bullish 29% 29% 21% 23% 22% 22% with the market 54% 17% 20% (+6) 20% I think the market will continue to 15% 16% 19% perform well, and I plan to increase 10% 12% 13% 11% 10% 10% 9% 11% 14% 14% my allocation to equities as a result 0% I think the market is due for a -17% -16% -18% -17% -14% significant correction, and I’m -18% -18% -22% -22% -19% -20% -28% -27% concerned about the possible Bearish -20% impact on my portfolio -14% 28% -17% -17% I think the market is due for a (-7) -13% -18% -23% -40% -21% -19% -29% -24% significant correction, but I’m -24% confident that I have a plan in place -24% -24% to withstand it -60% -31% -28% Bearish Net -35% -33% -35% -39% -41% -41% -52% -51% -46% -44% -80% -48% 28% 27% 23% 19% 23% 21% 21% 22% 15% 17% 20% 18% 17% Don’t know

Q2'16 Q4'16 Q2'17 Q4'17 Q2'18 Q4'18 Q2'19 Q4'19 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Base = Weighted Total Q6. Thinking about the next 3 months, which statement best describes your outlook for the U.S. stock market? ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 4 Investors feel more confident that now is a good time to invest than they have in the past 12 months Client Confidence Trends April 2016 – April 2021 Q2 '16 Q4 '16 Q2 '17 Q4 '17 Q2 '18 Q4 '18 Q2 '19 Q4 '19 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 70%

61% 59% 60% 56% 57% 57% 56% 53% 52% 47% 55% 50% 46% 47% 54% 45% 46% 51% 45% 45% 45% 40% 47% 46% 44% 45% 46% 40% 38% 44% 42% 37% 37% 39% 39% 38% 38% 38% 37% 36% 35% 30% 33%

20%

10%

Base = Weighted Total % Good Time To Invest % Better Off Financially % Confident In Decision Making Q1. In your opinion, is this a good time or bad time to invest in stocks, mutual funds and other equity-based investments? 5 Q3. In terms of how you are getting along financially, compared to a year ago, are you...? ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. Q4. How confident are you in making investment decisions for your household? Bullishness across generations increases significantly – especially among young investors and retirees Outlook For U.S. Stock Market By Life Stage (Single response only; among total sample) Young Investors Mid-Life Mature Retired 80% A 61% B C D I think the market will 55% 56% continue to perform well, 49% 49% 60% 47% 46% and I feel like my portfolio is 45% 43% 44% 40% 40% 41% 42% well-positioned to grow with 36% 37% the market. Bullish Net 36% 34% 34% 40% 30% 30% 29% 30% 39% 41% I think the market will 22% 26% 24% 30% 29% 31% 34% continue to perform well, 27% 22% 34% 24% 17% 21% 22% and I plan to increase my 20% 23% allocation to equities as a 26% result. 20% 19% 13% 13% 18% 15% 18% 13% 15% 14% 14% 15% 16% 13% 15% 12% 10% 7% 12% 0% I think the market is due for -9% a significant correction, and -16% -16% -15% -17% -14% -16% -15% -12% -21% -18% -18% -20% -21% -18% -19% -22% -21% -17% -17% I’m concerned about the possible impact on my -20% -16% -12% -16% -12% portfolio. -22% -18% -16% -23% -21% -16% -25% -26% -22% -30% -26% -25% -23% I think the market is due for -43% -29% -26% -40% -26% -24% a significant correction, but -31% -29% I’m confident that I have a -34% -32% -37% -36% -37% -36% plan to withstand it. -41% -60% -43% -44% -44% -47% -45% -46% -50% -48% Bearish Net -59% -80% 13% 10% 18% 14% 13% 14% 12% 17% 19% 20% 16% 18% 21% 20% 16% 19% 24% 27% 21% 19% Don’t know

Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Base = Weighted Total 6 Q6. Thinking about the next 3 months, which statement best describes your outlook for the U.S. stock market? Charles Schwab Confidential for internal purposes only Confidence in reaching financial goals remains steady

Percentage that feels ‘very’ or Confidence in Reaching Financial Goals ‘extremely’ confident by generation (Single response only; among total sample) 55% 48% 50% 55% 6% 5% 7% 5% 5% 5% 7% 7% 8% 9% 9% 10% 9% Q2’21 Extremely Confident Very Confident 48% 50% 46% 52% 30% 33% 33% 31% 33% 35% 33% 34% Somewhat Q1’21 37% 39% 38% 38% 40% Confident Not Very Confident 51% 48% 48% 51% Q4’20

62% 51% 47% 52% 52% Q3’20 53% 51% 49% 48% 53% 54% 49% 48% 45% 47% 45% 44% 42% 53% 47% 55% Q2’20

Young Investors Mid-Life Mature Retired 10% 10% 9% 10% 9% 7% 6% 6% 6% 4% 6% 5% 5% 3% 1% 2% 1% 2% 2% 2% 2% 1% 2% 1% 1% 1% Q2'16 Q4'16 Q2'17 Q4'17 Q2'18 Q4'18 Q2'19 Q4'19 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21

Base = Weighted Total ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 7 Q10. Which statement best describes your confidence in reaching your financial goals? Market and economic worries beat out politics and COVID-19 as biggest investor concerns

Primary Concern About Investing (Single response only; among those who have a concern)

6% 12% 29% 45% 6% Personal COVID-19 Political Markets/economy Other $ financial net landscape net situation net net

19% 16% 12% 12% 10% 6% 5% 6% 4% 3% 3% 1% 1%

The poli tic al I think the market Uncertainty due The financial The impac t of a Geopolitical or Issues related to The potential of a I’m concerned The state of the Performance of Fear of losing my Other landscape in is overdue for a to market volatility im pa ct of COVID- new president global my own personal recession about an extended real estate market U.S. corporate job Washington D.C. significant 19 to the economy taking offic e macroeconomic situation market downturn earnings correction due to shutdowns issues or reduced business operations

Base = Weighted Total (n=1,212) ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 8 Q7. What is your primary concern around money and investing within the next 3 months? Half of investors plan to move money over the next three months

Portfolio Allocation Changes Made During Past 3 Months & Planned in Next 3 Months (Multiple responses allowed; total sample)

64% MOVE MONEY NET 49%

40% Into individual stocks 26%

27% Have rebalanced your portfolio 20%

26% Into ETFs 20%

22% Past 3 Month Into mutual funds 17%

15% Next 3 Months Into cash investments 7%

11% Into another type of investment vehicle 8%

13% Invested in cryptocurrentcy 11%

9% Into fixed income investments 8%

Base = Weighted Total (n=1,212) ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 9 Q5. Which of the following actions have you taken, if any, in the past 3 months? / Q20. Which of the following actions do you plan to do over the next 3 months? Nearly one-third of investors plan to add money to their investment portfolio over the next three months

Financial Habit Changes Made During Past 3 Months & Planned in Next 3 Months (Multiple responses allowed; total sample)

48% Save more money 39%

44% Add money into my investment portfolio 30%

40% Pay down debt 30%

29% Add to an emergency fund 20% Past 3 Month 22% Seek investing guidance or advice 19% Next 3 Months 14% Take money out of my investment portfolio 7%

7% Create a written financial plan 7%

6% Move to the sidelines 4%

Base = Weighted Total (n=1,212) ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 10 Q5. Which of the following actions have you taken, if any, in the past 3 months? / Q20. Which of the following actions do you plan to do over the next 3 months? 2021 Outlook Clients share sentiment around ongoing financial implications of COVID-19 pandemic and other topics

11 ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. Majority of clients were not impacted financially by COVID-19, while just under a quarter were impacted either positively or negatively

Financial Impact of COVID-19 in 2020 (Single response only; among total sample)

Not Impacted Financially 54%

Negatively Impacted Financially 23%

Positively Impacted Financially 23%

Base = Weighted Total (n=1,212); Base = Q2’21 and Negatively Impacted By COVID-19 In 2020^ (n=275) QSI_Q221_1. To what extent were you financially impacted by COVID-19 in 2020? / QSI_Q221_2. How were you negatively impacted? / ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 12 QSI_Q221_3. You indicated you experienced a negative financial impact in 2020 due to COVID-19. How much have you recovered at this time? A majority of negatively-impacted investors have not fully recovered

2021 Recovery From Negative Financial Impact of Pandemic (Single response only; among those negatively impacted^)

8% 16% 48% 27% Experienced Fully Partially Have Not Yet Further Recovered Recovered Recovered Losses in 2021

Negative Financial Impacts Experienced Due to Pandemic (Multiple responses allowed; among those negatively impacted^)

33% 30% 30% 22% 20%

Investment loss I, or someone in I, or someone in Loss as a small I, or someone in my household, my household, business owner my household, lost a job had reduced took a pay cut work hours

Base = Weighted Total (n=1,212); Base = Q2’21 and Negatively Impacted By COVID-19 In 2020^ (n=275) QSI_Q221_1. To what extent were you financially impacted by COVID-19 in 2020? / QSI_Q221_2. How were you negatively impacted? / ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 13 QSI_Q221_3. You indicated you experienced a negative financial impact in 2020 due to COVID-19. How much have you recovered at this time? Travel tops investors’ plans for post-COVID spending, followed by dining out at restaurants

Plans for Post-COVID Spending (Multiple responses allowed; among total sample)

56%

14% 8% 7% 8% 10% 2% 2% 2% 1% <1%

Vacation/ Dining out/ Home Entertainment In-person Car purchase/ Self-care Retail Child-care Other None of the travel restaurants projects/ fitness lease shopping above renovation classes/ gym

Base = Weighted Total (n=1,212) ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 14 QSI_Q221_5. What category are you most excited to spend on once the COVID-19 pandemic restrictions are lifted and/or the risk level is lower? One in five investors has recently (or plans to) refinance their home due to current interest rate trends

Interest Rate Effect on Home Ownership (Single response only; among total sample)

71%

16%

4% 5% 4%

I have recently refinanced my I plan to refinance my home I plan to buy a home sooner I plan to delay purchasing a No impact on my decision home than expected home longer than expected making about home ownership/Not applicable

Base = Weighted Total (n=1,212) ©2020 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. 15 QSI_Q221_4. How have recent interest rate trends affected your decision making around home ownership? Disclosures:

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