Schwab Crypto Thematic ETF (STCE)
ARCA ARCA Primary 
XBER 
STCE: A Bitcoin Mining ETF Masquerading As A 'Crypto Fund'
The Schwab Crypto Thematic ETF is heavily concentrated in Bitcoin mining stocks, diverging from its stated broad crypto exposure objective. STCE's construction methodology allows inclusion of companies with minimal or no true crypto or blockchain exposure, undermining thematic purity. Over 60% of STCE's assets are allocated to Bitcoin miners, whose long-term profitability is structurally challenged by declining mining rewards.
STCE: A High-Beta Crypto Bet With Technical Support And Seasonal Tailwinds
Schwab Crypto Thematic ETF is rated a buy, offering exposure to crypto-linked stocks with reasonable valuation and seasonal tailwinds. STCE exhibits high volatility, with a 64% annualized standard deviation and significant tracking error, making it a high-risk, high-reward play. The ETF is concentrated in fintech, heavily weighted toward Financials and Information Technology, and relies on bullish trends in bitcoin and ether.
STCE: Not My Preferred Crypto Play
The Schwab Crypto Thematic ETF seeks to provide exposure to companies exposed to the cryptocurrency theme. Despite a solid 132% return since inception, STCE has underperformed peers like BITQ and FDIG. STCE's index methodology results in significant weights to some relatively small companies.
