Schwab Crypto Thematic ETF starts August 4th

The fund is designed to track the Schwab Crypto Thematic Index, a new proprietary index from Schwab Asset Management, which gives investors global exposure to businesses that can profit from creating or using cryptocurrencies and other digital assets. STCE, which will have an annual expense ratio of 0.30 percent, will be the cheapest crypto-related ETF currently offered to investors.

The index neither invests in nor tracks cryptocurrencies directly. Instead, it is intended to provide exposure to businesses that can profit from one or more of the following commercial ventures: developing, disseminating or implementing applications of blockchain or other distributed ledger technology; direct validation of consensus mechanisms for investing in, trading or acquiring cryptocurrency or other digital assets; facilitate others in doing so.

“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,” 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 Schwab Crypto Thematic ETF seeks to mimic as closely as possible the total return of the Schwab Crypto Thematic Index before fees and expenses. Created by Schwab Asset Management’s thematic research team, the index uses a potent combination of human insight, artificial intelligence technology acquired through the acquisition of Motif, a pioneer in thematic investing, and systematic models to find, pick, evaluate, and weight companies according to their relevance to the crypto-related topic.

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