WESTLAKE, Texas–(BUSINESS WIRE)–Schwab Asset Management, the asset administration arm of The Charles Schwab Corporation, at the moment introduced the launch of the Schwab Crypto Thematic ETF (NYSE Arca: STCE). The first day of buying and selling is predicted to be on or about August 4, 2022. The fund is designed to trace Schwab Asset Management’s new proprietary index, the Schwab Crypto Thematic Index, offering traders with world publicity to firms that will profit from the event or utilization of cryptocurrencies and different digital belongings. With an annual working expense ratio of 0.30%, STCE would be the lowest value crypto-related ETF accessible to traders at the moment.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,” stated 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 objective of the Schwab Crypto Thematic ETF is to trace as carefully as potential, earlier than charges and bills, the whole return of the Schwab Crypto Thematic Index. Developed by Schwab Asset Management’s Thematic Research workforce, the index makes use of the highly effective mixture of human perception; synthetic intelligence know-how acquired by way of the acquisition of Motif — a pacesetter in thematic investing; and systematic fashions to determine, choose, measure, and weight firms primarily based on their relevance to the crypto-related theme.
The index doesn’t straight observe or spend money on cryptocurrencies. Rather, it’s designed to ship world publicity to firms that will profit from a number of of the next enterprise actions: both straight or facilitating others in validating consensus mechanisms for (akin to mining or staking) investing in, or buying and selling cryptocurrency or different digital belongings; enabling the usage of cryptocurrency or different digital belongings to purchase or promote items or providers; and creating, distributing or implementing functions of blockchain or different distributed ledger know-how, together with in new cryptocurrencies or digital belongings.
The fifth largest supplier of ETFs2, Schwab Asset Management has greater than a decade of expertise managing ETFs and a sturdy capital markets workforce that performs an important position in making certain the Schwab ETFs operate effectively. Schwab additionally has a prolonged historical past in indexing, having launched its first proprietary index, the Schwab 1000 Index®, in 1991.
About Schwab Asset Management
One of the business’s largest and most skilled asset managers, Schwab Asset Management gives a targeted lineup of competitively priced ETFs, mutual funds and individually managed account methods designed to serve the central wants of most traders. By working by way of shoppers’ eyes, and placing them on the middle of our selections, we intention to ship distinctive experiences to traders and the monetary professionals who serve them. As of June 30, 2022, Schwab Asset Management managed roughly $575.9 billion on a discretionary foundation and $34.4 billion on a non-discretionary foundation. More data is on the market at www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab we consider within the energy of investing to assist people create a greater tomorrow. We have a historical past of difficult the established order in our business, innovating in ways in which profit traders and the advisors and employers who serve them, and championing our shoppers’ targets with ardour and integrity.
More data is on the market at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.
Investors ought to think about fastidiously data contained within the prospectus, or if accessible, the abstract prospectus, together with funding aims, dangers, fees and bills. You can receive a prospectus, or if accessible, a abstract prospectus by visiting schwabassetmanagement.com/prospectus. Please learn it fastidiously earlier than investing.
Investment returns will fluctuate and are topic to market volatility, in order that an investor’s shares, when redeemed or bought, could also be value roughly than their unique value. Unlike mutual funds, shares of ETFs are usually not individually redeemable straight with the ETF. Shares of ETF are purchased and bought at market worth, which can be greater or decrease than the web asset worth (NAV).
The fund won’t spend money on any cryptocurrency or digital belongings straight. It invests in firms listed within the Schwab Crypto Thematic Index and is designed to ship world publicity to firms that will profit from the event or utilization of cryptocurrencies (together with bitcoin) and different digital belongings, and the enterprise actions related to blockchain and different distributed ledger know-how.
The fund is non-diversified, which implies that it could spend money on the securities of comparatively few issuers. As a end result, a single adversarial financial or regulatory prevalence could have a extra vital impact on the fund’s investments, and the fund could expertise elevated volatility.
The know-how referring to digital belongings, together with blockchain, is new and creating and the dangers related to digital belongings could not absolutely emerge till the know-how is broadly used. In addition, the values of the businesses included within the fund will not be a mirrored image of their connection to digital belongings however could also be primarily based on different enterprise operations or strains of enterprise which implies that such firms’ working outcomes will not be considerably tied to their respective actions associated to digital belongings.
The fund invests in a portfolio of securities which are primarily based on a theme and its efficiency could undergo if such theme shouldn’t be appropriately recognized or if the theme develops in an surprising method. Performance might also undergo if the securities included within the index don’t profit from the event of such theme.
International investments contain further dangers, which embrace variations in monetary accounting requirements, forex fluctuations, geopolitical threat, overseas taxes and laws, and the potential for illiquid markets. Investing in rising markets could intensify these dangers.
The Schwab Crypto Thematic Index was developed by Charles Schwab Investment Management, Inc. and is designed to ship world publicity to firms that will profit from a number of of the next enterprise actions: both straight or facilitating others in validating consensus mechanisms for (akin to mining or staking), investing in, or buying and selling cryptocurrency or different digital belongings; enabling the usage of cryptocurrency or different digital belongings to purchase or promote items and providers; or creating, distributing or implementing functions of blockchain or different distributed ledger know-how together with in new cryptocurrencies or digital belongings. For the whole and present index methodology please confer with schwabassetmanagement.com/merchandise/stce.
Schwab Asset Management™ is the dba identify for Charles Schwab Investment Management, Inc. (CSIM), the funding adviser for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management is a separate however affiliated firm and subsidiary of The Charles Schwab Corporation, and isn’t affiliated with SIDCO.
1 Source: Based on crypto-focused ETFs inside ETF.com ECS’ “Digital Economy” area of interest class, June 30, 2022.
2 Source: etfdb.com, “ETF Issuer AUM League Table,” July 18, 2022.