Charles Schwab Asset Management’s exchange-traded fund will provide exposure to crypto-related companies.
The first crypto-related exchange-traded fund will be listed on New York Stock Exchange Arca from August 4.
And will carry an annual expense ratio of 30 basis points.
The ETF will carry the ticker STCE and will track Schwab’s crypto Thematic Fund as per the company’s press release.
The fund is designed to track Schwab Asset management’s new propriety index, the Schwab Crypto Thematic Index.
It seeks to provide investors with global exposure to companies that may benefit from developing or utilising cryptocurrencies and other digital assets, the Press Release mentions.
Additionally, the fund will not directly invest in crypto. Instead, it will provide global exposure to companies that may benefit from validating consensus, trading in cryptocurrency, or other digital assets.
“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.
He added, “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.”
With this, Schwab joins BlackRock and Fidelity, who have launched similar ETFs. However, they haven’t been able to perform well.
About Schwab Asset Management
Schwab Asset Management is the largest and most experienced asset managers.
The company offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors.
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.
