WESTLAKE, Texas–(BUSINESS WIRE)–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 around August 4, 2022. The fund is designed to track Schwab Asset Management’s new proprietary index, the Schwab Crypto Thematic Index, giving investors global exposure to companies that may benefit from the development or exploitation of cryptocurrencies and other digital assets. With an annual expense ratio of 0.30%, STCE will be the lowest crypto-related ETF available to investors today.1
“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 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 uses the powerful combination of human insight; artificial intelligence technology acquired through the acquisition of Motif — a thematic investment leader; and systematic models to identify, select, measure and weight companies based on their relevance to the crypto-related topic.
The index does not track or invest directly in cryptocurrencies. Rather, it is designed to provide 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; enables the use of cryptocurrency or other digital assets to buy or sell goods or services; and develop, distribute or implement 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 ten years of experience managing ETFs and a robust capital markets team that plays a critical role in ensuring that Schwab ETFs operate efficiently. Schwab also has a long 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 selection of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the core needs of most investors. By operating through the eyes of our clients, 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 advisors and the employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on TwitterFacebook, YouTube and LinkedIn.
Disclosures:
Investors should carefully consider the information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, fees and expenses. You can obtain a prospectus, or if available, a summary prospectus by going to schwabassetmanagement.com/prospectus. Please read it carefully before investing.
Investment returns will fluctuate and are subject to market volatility, so an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, units of ETFs cannot be redeemed individually directly with the ETF. Shares in ETFs are bought and sold at the market price, which may be higher or lower than the net asset value (NAV).
The fund will not invest directly in cryptocurrency or digital assets. 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 use of cryptocurrencies (including bitcoin) and other digital assets, and the business activities associated with blockchain and other distributed ledgers. technology.
The fund is non-diversified, which means that it can invest in securities of relatively few issuers. As a result, a single adverse economic or regulatory event may have a more significant effect on the Fund’s investments, and the Fund may experience increased volatility.
The technology associated with digital assets, including blockchain, is new and evolving, 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 reflect their connection to digital assets, but may be based on other business operations or industries, which means that the operating results of such companies may not be significantly related to their respective activities related to digital assets.
The Fund invests in a portfolio of securities based on a theme, and its performance may suffer if such a 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 a 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 can highlight 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 can benefit from one or more of the following business activities: either directly or facilitating others in validating consensus mechanisms for (such as .eg mining or betting), investing in or trading cryptocurrency or other digital assets; enables the use of cryptocurrency or other digital assets to buy or sell goods and services; or develop, distribute or implement applications of blockchain or other distributed ledger technology included in new cryptocurrencies or digital assets. For complete and current index methodology, see schwabassetmanagement.com/products/stce.
Schwab Asset Management™ is the dba name of Charles Schwab Investment Management, Inc. (CSIM), the investment advisor 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’s “Digital Economy” niche category, June 30, 2022.
2 Source: etfdb.com, “ETF Issuer AUM League Table”, 18 July 2022.
