News Archives: June, 2026
Barron's writes again on Sweeps and AI in "How AI Could Kill Charles Schwab and the Brokerage Industry's Cash Cow." The article says, "Charles Schwab spent a good chunk of its six-hour-long investor day on May 14 explaining to analysts and shareholders how the company is using artificial intelligence to boost its business. Investors, however, are far more focused on whether AI poses a threat to the substantial profits Schwab derives from so-called sweep cash, the money that clients hold in brokerage accounts that earn almost no interest. AI could change that equation by powering tools that allow investors to automatically move idle cash from their brokerage account to money-market funds or other higher-yielding accounts that are far less profitable for Schwab, as well as other brokerages that derive profits from customers' cash."
They explain, "The AI threat more broadly -- that customers would migrate from traditional financial services to AI start-ups—has been weighing on shares of Schwab, LPL Financial, Raymond James Financial, and Ameriprise Financial this year despite generally strong earnings growth. But the cash sweep issue is particularly nettlesome."
Barron's writes, "JPMorgan Chase, the nation's largest bank, kicked off the latest round of hand-wringing in April when it disclosed that it is developing an AI-powered tool that would help customers automatically move money from their checking or savings accounts to higher-yielding options. Schwab currently pays customers just 0.01% in interest on cash held in sweep accounts. Large money-market funds pay an average of 3.44%, according to Crane Data."
They state, "Analysts estimate that profits from sweep accounts contribute to a sizable chunk of profits, although amounts vary, totaling from 40% to 100% of firmwide pre-provision net revenue -- that is, earnings before setting aside funds for loan defaults or credit losses, according to Wolfe Research analyst Steven Chubak."
The piece continues, "At Schwab, which operates a bank, sweep cash contributes to bank deposit account fees and net interest income, which is the difference between the interest paid to customers on their deposits and what the company earns on interest-bearing assets such as fixed-income securities and loans. Almost half of Schwab's $6.5 billion in total revenue for the first quarter came from net interest income. Put another way, that's more than 100% of Schwab’s reported first-quarter net income of $2.5 billion."
It tells us, "Then there is LPL. It doesn't operate a bank; instead, it places customer deposits with partner banks that pay LPL a fee. Revenue generated from client cash -- including sweep accounts and money-market accounts -- came to $1.66 billion for 2025, according to the company's annual report."
Barron's comments, "Details about JPMorgan's forthcoming cash optimization tool are hazy, and a spokesman declined to provide more information. But other firms could easily develop their own, creating competitive pressure to add one. During his investor day presentation, Schwab CEO Rick Wurster said the company doesn't plan to offer its own cash optimization tool, noting that clients can already move money from sweep accounts to a variety of higher-paying options such as money-market funds. The company also said strong lending activity this year can support net interest margin growth."
They add, "On recent first-quarter earnings calls, other CEOs have also played down the AI threat to cash profits. LPL CEO Rich Steinmeier said he didn't see 'an imminent risk.' Raymond James CEO Paul Shoukry said it wasn't much more than 'an incremental threat,' and more a concern for online brokerage firms than for companies like his, where the client has a relationship with a financial advisor."
For more on AI and cash sweeps, see our recent Crane Data News stories: "LPL Sees No AI Risk of Cash Sorting" (5/4/26), "Raymond James Call Responds to 'Agentic AI Cash Sweep Optimization'" (4/24/26), "Barron's on Schwab AI Sweeps Worries" (4/21/26), "Earnings: JP Morgan Talks AI Cash Allocation Tool; BNY on Tokenization" (4/20/26), "Schwab Says AI a Tailwind, Not a Threat to Cash Sweeps on Q1 Update" (4/17) and "Morgan Stanley Q1 Call: AI & Sweeps" (4/16).
In related news, money fund yields (7-day, annualized, simple, net) were up 2 basis points to 3.44% on average during the week ended Friday, May 29 (as measured by our Crane 100 Money Fund Index), after decreasing two bps the week prior. Fund yields hadn't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged five weeks ago. Yields were 3.47% on 4/30/26 and 3/31/26, 3.49% on 2/28/26, 3.50% on 1/31/26, 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23.
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 710), shows a 7-day yield of 3.35%, up 3 bps in the week through Friday. Prime Inst money fund yields were up 3 bps at 3.58% in the latest week. Government Inst MFs were up 4 bps at 3.44%. Treasury Inst MFs were up 2 bps at 3.41%. Treasury Retail MFs currently yield 3.18%, Government Retail MFs yield 3.16% and Prime Retail MFs yield 3.35%, Tax-exempt MF 7-day yields were down 14 bps to 1.56%.
Money market mutual fund assets have now hit an all-time record high of $8.292 trillion on May 29, the previous record of $8.281 trillion was seen the day before (5/28), and prior to that, $8.280 trillion on March 18, according to our Money Fund Intelligence Daily. Assets have jumped $84.8 billion in the week through Friday, and they've increased by $208.6 billion in May month-to-date (through 5/29). MMF assets decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion last May. Weighted average maturities were at 42 days for the Crane MFA and 44 days the Crane 100 Money Fund Index.
According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/29), just 177 money funds (out of 821 total) yield under 3.0% with $231.1 billion in assets, or 2.8%, while the vast majority (644) of funds yield between 3.00% and 3.99% ($8.061 trillion, or 97.2%). No funds yield over 4.0%.
Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp the week prior. The latest Brokerage Sweep Intelligence, with data as of May 29, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
The U.S. Securities and Exchange Commission published its latest monthly "Money Market Fund Statistics" summary, which shows that total money fund assets decreased by $102.3 billion in April 2026 to $8.188 trillion, after falling to $8.290 trillion the month prior and hitting a record high $8.341 trillion two months prior. The SEC shows Prime MMFs decreased $26.2 billion in April to $1.356 trillion, Govt & Treasury funds decreased $75.9 billion to $6.680 trillion and Tax Exempt funds decreased $0.3 billion to $151.6 billion. Taxable yields were mixed in April, while Tax Exempt MMFs yields were higher. The SEC's Division of Investment Management summarizes monthly Form N-MFP data and includes asset totals and averages for yields, liquidity levels, WAMs, WALs, holdings, and other money market fund trends. We review their latest numbers below. (Our MFI XLS monthly shows money fund assets decreasing $99.0 billion in April 2026 to $8.099 trillion. In May month-to-date through 5/28, total money fund assets have increased by $197.6 billion to a record high $8.281 trillion, according to Crane Data's separate, and slightly smaller, MFI Daily series.)
April's asset decrease follows a decrease of $50.7 billion in March, an increase of $123.7 billion in February, $36.6 billion in January, $125.0 billion in December, $125.1 billion in November, $153.2 billion in October, $106.0 billion in September, $138.0 billion in August, $60.2 billion in July, $4.3 billion in June, $94.9 billion in May and a decrease of $17.5 billion last April. Over the 12 months through 4/30/26, total MMF assets have increased by $814.1 billion, or 11.0%, according to the SEC's series.
The SEC's stats show that of the $8.188 trillion in assets, $1.356 trillion was in Prime funds, down $26.2 billion in April. Prime assets were down $0.5 billion in March, up $18.2 billion in February, $22.4 billion in January, $1.2 billion in December, $3.1 billion in November, $9.1 billion in October, $6.2 billion in September, $20.2 billion in August, $22.7 billion in July, $9.8 billion in June, $11.8 billion in May and $2.3 billion last April. Prime funds represented 16.6% of total assets at the end of April. They've increased by $97.9 billion, or 7.8%, over the past 12 months. (Note that the SEC's series includes a number of internal money funds not tracked by ICI, though Crane Data includes most of these assets in its collections.)
Government & Treasury funds totaled $6.680 trillion, or 81.6% of assets. They decreased $75.9 billion in April, decreased $52.0 billion in March, increased $104.5 billion in February, increased $23.1 billion in January, increased $117.3 billion in December, increased $115.4 billion in November, increased $142.1 billion in October, increased $97.8 billion in September, increased $118.1 billion in August, increased $39.0 billion in July, decreased $0.7 billion in June, increased $82.7 billion in May and decreased $25.1 billion last April. Govt & Treasury MMFs are up $711.5 billion over 12 months, or 11.9%. Tax Exempt Funds decreased $0.3 billion to $151.6 billion, or 1.9% of all assets. The number of money funds was 289 in April, up 2 from the previous month and up 12 funds from a year earlier.
Yields for Taxable MMFs were mixed while Tax Exempt MMFs were up in April. The Weighted Average Gross 7-Day Yield for Prime Institutional Funds on April 30 was 3.82%, up 1 bp from the prior month. The Weighted Average Gross 7-Day Yield for Prime Retail MMFs was 3.82%, unchanged from the previous month. Gross yields were 3.71% for Government Funds, unchanged from last month. Gross yields for Treasury Funds were down 1 bp at 3.71%. Gross Yields for Tax Exempt Institutional MMFs were up 101 basis points to 3.53% in April. Gross Yields for Tax Exempt Retail funds were up 79 bps to 3.29%.
The Weighted Average 7-Day Net Yield for Prime Institutional MMFs was 3.73%, up 2 bps from the previous month and down 64 bps from 4/30/25. The Average Net Yield for Prime Retail Funds was 3.56%, up 1 bp from the previous month and down 66 bps since 4/30/25. Net yields were 3.50% for Government Funds, unchanged from last month. Net yields for Treasury Funds were down 1 bp from the previous month at 3.50%. Net Yields for Tax Exempt Institutional MMFs were up 100 bps from March to 3.41%. Net Yields for Tax Exempt Retail funds were up 79 bps at 3.07% in April. (Note: These averages are asset-weighted.)
WALs and WAMs were mixed in April. The average Weighted Average Life, or WAL, was 66.3 days (up 2.8 days) for Prime Institutional funds, and 54.4 days for Prime Retail funds (up 2.7 days). Government fund WALs averaged 94.9 days (up 0.5 days) while Treasury fund WALs averaged 98.2 days (up 1.3 days). Tax Exempt Institutional fund WALs were 4.4 days (down 0.2 days), and Tax Exempt Retail MMF WALs averaged 26.9 days (down 2.1 days).
The Weighted Average Maturity, or WAM, was 40.6 days (up 3.2 days from the previous month) for Prime Institutional funds, 36.6 days (up 3.8 days from the previous month) for Prime Retail funds, 41.3 days (down 0.5 days from previous month) for Government funds, and 47.3 days (down 0.2 days from previous month) for Treasury funds. Tax Exempt Inst WAMs were unchanged at 4.4 days, while Tax Exempt Retail WAMs were down 2.2 days from previous month at 26.0 days.
Total Daily Liquid Assets for Prime Institutional funds were 49.7% in April (down 3.3% from the previous month), and DLA for Prime Retail funds was 47.6% (down 3.8% from previous month) as a percent of total assets. The average DLA was 59.1% for Govt MMFs and 94.3% for Treasury MMFs. Total Weekly Liquid Assets was 65.7% (down 0.3% from the previous month) for Prime Institutional MMFs, and 63.4% (up 0.3% from the previous month) for Prime Retail funds. Average WLA was 75.1% for Govt MMFs and 99.0% for Treasury MMFs.
Note that the SEC made a number of changes to their monthly release in April 2025, so we're no longer publishing a number of tables. A press release titled, "SEC Publishes New Data and Analysis About Registered Investment Companies and Money Market Funds," states, "The Securities and Exchange Commission ... published new data and analysis in a pair of reports that provide the investing public with updated key information about registered investment companies and money market funds. 'It is important that the Commission publicly shares the information it collects in a clear and transparent way,' says Acting Chairman Mark Uyeda. 'These two reports will provide the public with key information about the approximately $41.5 trillion investors trust to funds and the approximately $7.39 trillion invested in money market funds.'"
The SEC says, "Money Market Fund Statistics is an enhanced version of the money market funds report generated by the Division of Investment Management. This report contains additional statistical analysis and enhancements, as well as certain metrics based on Form N-MFP data. The modifications to the report are designed to further facilitate the public's ability to efficiently review, digest, and use aggregate information about the money market fund industry by including summaries of more money market fund data, including information about internal affiliated funds, portfolio investments, flows, and industry concentration. The report extends the downloadable historical statistical series of data back to 2010."
Tim Husson, who leads the SEC's Division of Investment Management's Analytics Office, adds, "Forms N-MFP and N-CEN provide insights into key areas of the investment company industry. The reports reflect our continued dedication to enhance the public's use of important information about the industry."
