Schwab clients eased back on concentrated equity bets in March as war began in Iran, pulling the Schwab Trading Activity Index (STAX) down 2.23% from February's long-term high to a reading of 56.04. That drop was the steepest monthly reversal for STAX since a 3.64% fall in May 2025, and left March as the second-highest reading of the recent months after February.
Against a backdrop of falling markets, individual investors at Schwab spent proportionally less time selecting single names and gravitated toward broader exposures. Five of the 10 largest positions by client net-buys during March were exchange-traded funds rather than individual stocks.
"Rather than attempting to identify individual standout opportunities, investors are adopting a broader, less concentrated strategy and are seeking to diversify risk through investments in more diversified exchange-traded funds," said Joe Mazzola, Head Trading and Derivatives Strategist at Schwab.
The March STAX period, which concluded on March 27, coincided with an S&P 500 decline of more than 7% - the largest monthly fall covering a STAX period since the index plunged more than 11% in September 2022.
On the list of most net-bought names, NVIDIA rose to the top spot in March after ranking third in February. Clients showed interest in identifying a market bottom as NVIDIA shares tested their 200-day moving average and longer-term support near the $170 area. On the final day of the STAX period that support failed, with NVIDIA closing near $167.
Microsoft was the second-most net-bought name in March after leading the January leaderboard. The stock dropped about 10% during the STAX period and was down roughly 25% year to date.
Tesla reappeared among the top five net-bought stocks after falling off the list in February. The equity first declined toward former support near $380, attracting some client interest late in March, then slipped further to just above $360.
Memory chipmaker Micron ranked fourth among net-buys. The stock reached an intramonth record above $471 before retracing about 30% amid concerns related to AI competition.
Amazon returned to the net-bought roster in March after finishing first in February.
On the sell side, Broadcom was the largest net-sold individual equity during the period. Shares slid sharply to about $300 by the end of the STAX window after peaking above $400 late last year. Netflix was the second-most net-sold name in March, having been among the top net-buys in February.
Monetary policy remained on pause in March. The Federal Reserve met and elected to keep interest rates unchanged for the second consecutive meeting following three rate cuts late last year that set the target federal funds range to between 3.5% and 3.75%.
Clear summary
In March, Schwab clients shifted toward diversified ETFs and away from concentrated single-stock bets as geopolitical tensions in Iran and market weakness pushed the STAX down 2.23% to 56.04. The S&P 500 fell more than 7% during the STAX period ending March 27, while individual client net-buy and net-sell activity highlighted both continued interest in large-cap technology names and selective selling in previously high-flying stocks.
Key points
- STAX fell 2.23% in March to 56.04, the largest monthly decline since May 2025.
- Investors favored diversified ETFs - five of the top 10 net-buys were ETFs - indicating a move toward broader risk exposure.
- Net-buy and net-sell activity concentrated in major technology and consumer discretionary names, with NVIDIA, Microsoft, Tesla, Micron, and Amazon among top net-buys, and Broadcom and Netflix among top net-sells.
Risks and uncertainties
- Geopolitical risk: The onset of war in Iran coincided with reduced trading activity and increased ETF allocation, creating uncertainty in market direction - sectors sensitive to macro risk include broad equity markets and technology.
- Market volatility: The S&P 500's more than 7% decline during the STAX period highlights near-term downside risk for investors, particularly in individual equities that had been recently elevated.
- Company-specific concerns: Stocks such as Micron experienced sharp reversals after record highs, driven by sector-specific worries like AI competition, introducing downside risk for semiconductor and AI-related sectors.