Schwab Crypto Thematic ETF

Schwab Crypto Thematic ETF (STCE) is an index fund that tracks the Schwab Crypto Thematic Index. It owns stocks of companies linked to cryptocurrency and blockchain, not bitcoin or other crypto directly. Its expense ratio, the yearly fee, is 0.30%. That made it the cheapest of nine similar funds compared, where the average was 0.60%. The trade-off is very large price swings: the fund fell 54.1% from October 15, 2025 to March 30, 2026.

• Over the year to Oct 27, 2026, STCE returned -48.6%, 7th of 9 among similar funds.
• Its worst full calendar year was 2025 (+36.1%); its best was 2023 (+108.6%).
• The deepest fall in its price history was 54.1% (Oct 15, 2025 to Mar 30, 2026), not yet recovered.

As of Jun 30, 2026, the fund held 35 securities; the ten largest made up 53.91% of assets. It also reported 13.36% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors withdrew a net $6.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +25.38%, +24.15%, -13.26%.

STCE tries to match the total return of the Schwab Crypto Thematic Index, before fees. The index looks for companies around the world that may benefit from crypto and digital assets. That covers mining or staking (the work that validates crypto transactions), investing in or trading digital assets, using crypto to pay for goods and services, and building blockchain technology. A blockchain is a shared digital ledger that records transactions in linked blocks.

The index uses software that reads large amounts of public documents and searches for theme-related keywords. Each company gets a score for how closely it is tied to the theme, which Schwab calls its "Thematic Beta." Companies that pass liquidity screens are ranked, and up to 50 are kept. Staff at the index provider then review each one by hand. Weights follow each company's score, with minimum and maximum limits. Because the method relies on keywords, not revenue or profits, it can include companies whose main business has little to do with crypto.

As of June 30, 2026, the fund held 35 companies, and the top 10 made up about 54% of assets. The largest were Bitdeer Technologies (8.2%), Hive Digital (5.8%), Core Scientific (5.7%) and Galaxy Digital (5.7%). About 65% was in US-listed companies. The fund is non-diversified, meaning it can put more money into fewer companies. Turnover was 62%. As an index fund, it does nothing to soften losses when prices fall.

• STCE charges 0.3% a year, versus an average of 0.6% for the similar funds below (1st of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).

It is a narrow, non-diversified bet on crypto-related stocks with volatility of 63% over one year, so it fits best as a small add-on rather than a foundation.

STCE could add a small bet on crypto-related businesses at a low cost: 0.30% a year. In the SEC's standard example, that is about $31 in the first year on $10,000. The fund launched in August 2022, so its history doesn't cover the 2008, 2020 or 2022 market crashes. Every full calendar year has been a gain, and the weakest was 36.4% in 2025. That hides a 54.1% drop from October 15, 2025 to March 30, 2026, which had not been recovered as of October 27, 2026. Anyone who had to sell during a fall like that would lock in heavy losses. Income is small: a 2.21% trailing yield as of October 27, 2026, paid once a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.