Schwab Asset Management, the asset management arm of The Charles
Schwab Corporation, today announced the launch of the Schwab Crypto
Thematic ETF (NYSE Arca: STCE). The first day of trading is
expected to be on or about August 4, 2022. The fund is designed to
track Schwab Asset Management’s new proprietary index, the Schwab
Crypto Thematic Index, providing 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 will be the lowest cost crypto-related
ETF available to investors today.1
“For investors who are interested in cryptocurrency exposures,
there is a whole ecosystem to consider as more companies seek to
derive revenue from crypto directly and indirectly,” said David
Botset, Managing Director, Head of Equity Product Management and
Innovation at Schwab Asset Management. “The Schwab Crypto Thematic
ETF seeks to provide access to the growing global crypto ecosystem
along with the benefits of transparency and low cost that investors
and advisors expect from Schwab ETFs.”
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 utilizes the
powerful combination of human insight; artificial intelligence
technology acquired via the acquisition of Motif — a leader in
thematic investing; and systematic models to identify, select,
measure, and weight companies based on their relevance to the
crypto-related theme.
The 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.
The fifth largest provider of ETFs2, Schwab Asset Management has
more than a decade of experience managing ETFs and a robust capital
markets team that plays a crucial role in ensuring the Schwab ETFs
function efficiently. Schwab also has a lengthy history in
indexing, having launched its first proprietary index, the Schwab
1000 Index®, in 1991.
About Schwab Asset Management
One of the industry’s largest and most experienced asset
managers, Schwab Asset Management offers a focused lineup of
competitively priced ETFs, mutual funds and separately managed
account strategies designed to serve the central needs of most
investors. By operating through clients’ eyes, and putting them at
the center of our decisions, we aim to deliver exceptional
experiences to investors and the financial professionals who serve
them. 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. More information is available
at www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us
on Twitter, Facebook, YouTube and LinkedIn.
Disclosures:
Investors should consider carefully information contained in
the prospectus, or if available, the summary prospectus, including
investment objectives, risks, charges and expenses. You can obtain
a prospectus, or if available, a summary prospectus by visiting
schwabassetmanagement.com/prospectus. Please read it carefully
before investing.
Investment returns will fluctuate and are subject to market
volatility, so that an investor’s shares, when redeemed or sold,
may be worth more or less than their original cost. Unlike mutual
funds, shares of ETFs are not individually redeemable directly with
the ETF. Shares of ETF are bought and sold at market price, which
may be higher or lower than the net asset value (NAV).
The fund will not invest in any cryptocurrency or digital
assets directly. It invests in companies listed in the Schwab
Crypto Thematic Index and is designed to deliver global exposure to
companies that may benefit from the development or utilization of
cryptocurrencies (including bitcoin) and other digital assets, and
the business activities connected to blockchain and other
distributed ledger technology.
The fund is non-diversified, which means that it may invest in
the securities of relatively few issuers. As a result, a single
adverse economic or regulatory occurrence may have a more
significant effect on the fund’s investments, and the fund may
experience increased volatility.
The technology relating to digital assets, including blockchain,
is new and developing and the risks associated with digital assets
may not fully emerge until the technology is widely used. In
addition, the values of the companies included in the fund may not
be a reflection of their connection to digital assets but may be
based on other business operations or lines of business which means
that such companies’ operating results may not be significantly
tied to their respective activities related to digital assets.
The fund invests in a portfolio of securities that are based on
a theme and its performance may suffer if such theme is not
correctly identified or if the theme develops in an unexpected
manner. Performance may also suffer if the securities included in
the index do not benefit from the development of such theme.
International investments involve additional risks, which
include differences in financial accounting standards, currency
fluctuations, geopolitical risk, foreign taxes and regulations, and
the potential for illiquid markets. Investing in emerging markets
may accentuate these risks.
The Schwab Crypto Thematic Index was developed by Charles Schwab
Investment Management, Inc. and 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 and services; or developing, distributing or
implementing applications of blockchain or other distributed ledger
technology including in new cryptocurrencies or digital assets. For
the complete and current index methodology please refer to
schwabassetmanagement.com/products/stce.
Schwab Asset Management™ is the dba name for Charles Schwab
Investment Management, Inc. (CSIM), the investment adviser for
Schwab ETFs. Schwab ETFs are distributed by SEI Investments
Distribution Co. (SIDCO). Schwab Asset Management is a separate but
affiliated company and subsidiary of The Charles Schwab
Corporation, and is not affiliated with SIDCO.
(0622-2UF3)
1 Source: Based on crypto-focused ETFs within ETF.com ECS’
“Digital Economy” niche category, June 30, 2022. 2 Source:
etfdb.com, “ETF Issuer AUM League Table,” July 18, 2022.
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Christine Hudacko Charles Schwab 415-961-3790
Charles Schwab (NYSE:SCHW)
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