Edward Jones is facing a challenging second quarter, with net new assets and household growth showing notable declines.
For RIAs and wealth advisors watching industry trends, the developments highlight the pressures legacy firms face from demographic shifts, evolving client expectations, and competitive dynamics in the advice market.
The St. Louis-based firm reported net new assets of $17 billion for the quarter, down 10% from the same period in 2024. This slowdown represents what the company calls a “continuing downward trend,” driven by an aging client base and wealth transfers to institutions outside the firm. As many advisors know, the transition of assets to heirs—who may have no existing relationship with their parents’ or grandparents’ advisor—remains a critical point of attrition for traditional wealth managers.
Macroeconomic conditions are also weighing on flows. Edward Jones cited inflation, ongoing consumer spending trends, and market volatility as contributing factors to the weaker results. These headwinds, combined with demographic realities, are shaping a tougher environment for net asset gathering.
The slowdown in household acquisition was even more pronounced. Edward Jones added 27,000 net new households in Q2, down 55% from the 60,000 it brought on in the same quarter last year. For advisors, this underlines the growing challenge of organic client acquisition at scale, especially for large, relationship-driven firms that have historically relied on in-person community presence and deep local roots.
The firm declined to detail specific strategies for reversing the declines but pointed out that total client assets under care rose to $2.3 trillion—up 12% year-over-year—thanks largely to higher market valuations and the cumulative effect of past asset gathering. This uptick suggests that market appreciation, rather than organic growth, was the primary driver of asset increases.
Edward Jones closed the quarter with 20,309 advisors, a 3.7% increase from 19,589 a year ago. However, advisor attrition rose to 6.4% from 5.3% in Q2 2024. The company attributed the higher attrition rate primarily to retirements rather than departures to competitors. With advisor demographics skewing older across much of the industry, this aligns with broader trends and underscores the importance of succession planning.
Despite these headwinds, Edward Jones continues to pursue its goal of expanding its advisor ranks by 3% annually. As part of its growth and client segmentation strategy, the firm has been evolving its service model to target more affluent households. Over the past three years, it has introduced team-based structures for advisors and expanded the range of planning solutions offered. More advisors are earning the Certified Financial Planner designation, positioning the firm to compete more directly in the high-net-worth space.
Jason Henderson, a principal at Edward Jones and leader of advisor growth, emphasized the firm’s commitment to supporting its advisors through investments in technology, solution breadth, and professional development. “We remain focused on empowering our financial advisors to deliver meaningful value to the clients and communities we serve,” Henderson said. “We do this through continued investment in cutting-edge technology, a broadened suite of solutions, and support for advanced professional development.”
For independent advisors and RIAs monitoring the competitive landscape, Edward Jones’ Q2 results illustrate several key themes:
1. The aging client challenge is accelerating asset leakage.
Edward Jones’ acknowledgment that generational wealth transfers are happening outside the firm mirrors a problem seen across the industry. Advisors who have not built relationships with heirs risk seeing significant outflows when wealth changes hands. For RIAs, this reinforces the importance of engaging entire client families early, offering intergenerational planning, and building trust with future inheritors before assets are in motion.
2. Household growth is harder to sustain in a mature market.
The steep 55% drop in net new households suggests that the pace of organic growth at large firms may be slowing industry-wide. For growth-oriented RIAs, this points to the competitive advantage of niche specialization, proactive marketing, and referral programs—areas where independent advisors can be more agile than national brokerage models.
3. Market performance is masking organic growth weaknesses.
Edward Jones’ 12% year-over-year increase in assets under care was primarily market-driven. This means that without favorable market conditions, asset growth would have looked far weaker. RIAs relying heavily on market appreciation should take note: building sustainable inflows is critical for long-term stability, particularly in lower-return environments.
4. Advisor demographics are shifting.
The firm’s advisor headcount is growing modestly, but the rising attrition rate due to retirements is a reminder that the advisor workforce is aging across the board. Independent firms should assess their own succession readiness, consider bringing in next-generation talent earlier, and explore team structures that can smooth client transitions when senior advisors retire.
5. Strategic repositioning toward affluent clients is underway.
Edward Jones’ pivot to serve wealthier households with more comprehensive services—supported by team-based models and CFP credentials—is part of a broader industry trend toward fee-based, planning-led relationships. RIAs can expect more competition in this segment but may retain an edge in offering highly personalized service and flexible fee arrangements.
6. Technology and advisor enablement remain central to competitive positioning.
Henderson’s comments highlight the firm’s investments in digital tools and advisor support. For independent firms, this underlines the need to continually assess whether their tech stack, planning capabilities, and client experience are competitive with larger, well-capitalized players.
Looking ahead, Edward Jones will need to address both the demographic headwinds in its client base and the operational realities of an aging advisor force. Strengthening intergenerational client relationships, deepening engagement with heirs, and maintaining advisor recruitment pipelines will be critical. The shift toward more affluent households may help offset some outflows, but it also raises the stakes for delivering sophisticated planning and investment solutions that meet higher client expectations.
For RIAs and wealth managers outside the wirehouse and large brokerage channels, the Edward Jones case serves as both a cautionary tale and a competitive opportunity. Firms that can combine robust succession strategies, proactive family engagement, and targeted growth initiatives may be better positioned to capture assets that are leaving legacy institutions. In an environment where market performance alone can no longer be relied upon to drive growth, intentional client acquisition, retention, and relationship depth will be the defining factors for success.
