Schwab’s first crypto-themed ETF opens next week

by Arthur · July 30, 2022

The asset management arm of The Charles Schwab Corporation, Schwab Asset Management, declared the launch of the Schwab Crypto Thematic ETF. The first day of exchange is intended to be approximately August 4, 2022.

The ETF is intended to track Schwab Asset Management’s new exclusive list, the Schwab Crypto Thematic Index, and provides investors with worldwide exposure to organizations that stand to profit from the development or use of cryptocurrencies or digital assets.

With an annual expense ratio of 0.30%, STCE will be the cheapest crypto-related ETF available to financial investors today.

David Botset, CEO, Head of Equity Product Management and Innovation at Schwab Asset Management, stated: “For investors interested in cryptocurrency exposures, there is an entire ecosystem to consider as more companies seek to derive revenue from crypto directly and indirectly.”

Further comments, The Schwab Crypto Thematic ETF appears to provide access to become part of the worldwide crypto community along with the benefits of transparency and minimal expenses that investors and advisors expect from Schwab ETFs.

The goal of the Schwab Crypto Thematic ETF is to track the total return of the Schwab Crypto Thematic Index, as closely as can be expected, before charges and expenses.

Created by Schwab Asset Management’s thematic research group, the index uses the strong blend of human knowledge, artificial intelligence technology acquired through the acquisition of Motif. A forerunner in current economic planning and conscious models for recognizing, selecting, measuring and weighting organizations in light of their relevance to the crypto-related subject.

The list does not follow straight forward or put resources into digital forms of money. Rather, it is intended to provide worldwide exposure to organizations that can profit from at least one of the accompanying industry activities.

Either directly or working with others to validate consensus mechanisms for (such as mining or tagging) putting resources into, or exchanging cryptocurrency or other digital assets.

Schwab Asset Management, the fifth largest provider of ETFs2, has over 10 years of experience monitoring ETFs and a robust capital markets team that plays a critical role in guaranteeing the efficient operation of Schwab ETFs.

The fund is non-diversified, and can therefore invest in securities from a few issuers. This could result in a single adverse economic event that could have a significant effect on the Fund’s investment, and the Funds could experience excessive volatility.