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Charles Schwab reported this week thatretirement plan participant account balances within itsself-directed brokerage accounts averaged $252,675 at the end ofthe first quarter.

This was down 5.9% year over year, and down by 14.1% from thefourth quarter.

First-quarter trading volumes nearly doubled, which was in linewith broader investor activity as coronavirus-spurred marketvolatility sent major stock indexes plunging, Schwab said. SBDAparticipants averaged 13 trades per account, up from seven in theprevious quarter.

Asset allocations were on a par with last quarter, with cashholdings being the only exception. Mutual funds held 34% ofparticipant assets, equities 27%, cash 19% (up from 12% in thefourth quarter), ETFs 17% and fixed income 3%.

On average, participants held 10 positions in their SDBAaccounts at the end of the first quarter, similar both to last yearand last quarter.

Schwab's quarterly SDBA report includes data collected from some145,000 retirement plan participants with current balances between$5,000 and $10 million in their Schwab Personal Choice RetirementAccount.

SBDA participants can use their brokerage accounts to investretirement savings in stocks, bonds, exchange-traded funds, mutualfunds and other securities that are not part of their retirementplan's core investment offerings.

Gen X made up 42.6% of SDBA participants in the first quarter,baby boomers 37.2% and millennials 13.9%.

Boomers had the highest SDBA balances at an average of $367,425,followed by Gen X at $199,071 and millennials at $65,207.

Forty-five percent of Gen X accounts were advised, followed by41% of boomer accounts and 11% of millennial ones.

Allocation trends

According to data Schwab collected in the first quarter,large-cap funds had the largest allocation at 29.8% of all mutualfund allocations, followed by taxable bond funds at 21.9% andinternational funds at 14.4%.

Overall, the market value allocations was little changed fromlast quarter and last year.

Information technology maintained its grip on equity sectorholdings at 29%, up from 27% last quarter. These were the top fiveequity holdings:

• Apple – 10.9%
• Amazon – 6.5%
• Microsoft – 3.6%
• Berkshire Hathaway – 2.5%
• Tesla – 2.1%

Investors allocated 48% of their ETF holdings to U.S.equity.

The SPDR S&P 500 ETF was the top holding at 5%, followed bythe Vanguard Total Stock Market ETF at 4% and the Invesco QQQ Trustat 3.4%.

U.S. fixed income, international equity and sector ETFscompleted the allocations at 18%, 13% and 10%.

Fractional shares

Along with its first quarter SBDA report, Schwab also announcedthat its new Schwab Stock Slices service is now available inits brokerage accounts, including Personal Choice RetirementAccounts.

This service enables investors to own fractional shares inS&P 500 companies for as little as $5 each.

Investors can use the new service to buy a single stock slice orup to 10 at once. In addition, they can hold slices of as manyS&P 500 companies as they wish through multiple purchases.

Schwab Stock Slices are purchased commission-free online.