The Schwab Crypto Thematic ETF (STCE) starts trading on the New York Stock Exchange, Arca from today.
The crypto-linked ETF, from Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, is designed to track a new proprietary index, the Schwab Crypto Thematic Index.
STCE provides investors with global exposure to companies that may benefit from the development or utilization of cryptocurrencies and other digital assets.
With an annual operating expense ratio of 0.30%, STCE is the lowest cost crypto-related ETF available to investors today.
David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management, said:
“We’re excited to be able to offer investors the Schwab Crypto Thematic ETF, which is different than other crypto-related ETFs on the market today in the way that the index identifies, selects and weights constituents based on a company’s relevance to the crypto ecosystem using natural language processing.”
“The index STCE is designed to track can offer more targeted exposure to cryptocurrency-focused companies compared to blockchain technology ETFs, which may have significant exposure to multi-national companies involved in blockchain.2 This new ETF is a great example of how we leverage our scalable foundation and core capabilities to innovate to help clients with more personalized needs.”
The goal of the Schwab Crypto Thematic ETF is to track as closely as possible, before fees and expenses, the total return of the Schwab Crypto Thematic Index. Developed by Schwab Asset Management’s Thematic Research team, the index is built with the powerful combination of human insight, artificial intelligence technology and systematic models.
The recently announced crypto-linked index does not directly track or invest in cryptocurrencies. Rather, it is designed to deliver global exposure to companies that may benefit from one or more of the following business activities: either directly or facilitating others in validating consensus mechanisms for (such as mining or staking) investing in, or trading cryptocurrency or other digital assets; enabling the use of cryptocurrency or other digital assets to buy or sell goods or services; and developing, distributing or implementing applications of blockchain or other distributed ledger technology, including in new cryptocurrencies or digital assets.
Schwab Asset Management is the fifth largest ETFs provider with over a decade of experience managing ETFs. As of June 30, 2022, Schwab Asset Management managed approximately $575.9 billion on a discretionary basis and $34.4 billion on a non-discretionary basis.
NYSE Arca is the first all-electronic exchange in the U.S. for the listing and trading of exchange-traded funds (ETFs) and also trades more than 8,000 U.S.-listed securities.