Today the Schwab Crypto Thematic ETF (STCE) begins trading on
the NYSE Arca. The fund, 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,
and to provide 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.1
“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,” said David Botset,
Managing Director, Head of Equity Product Management and Innovation
at Schwab Asset Management. “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 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.
More information on the Schwab Crypto Thematic ETF can be found
here.
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.
(0822-2EXM)
__________________________ 1 Source: Based on crypto-focused
ETFs within ETF.com ECS’ “Digital Economy” niche category, June 30,
2022. 2 All corporate names are for illustrative purposes only and
are not a recommendation, offer to sell, or a solicitation of an
offer to buy any security.
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version on businesswire.com: https://www.businesswire.com/news/home/20220804005323/en/
Christine Hudacko Charles Schwab 415-961-3790
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