Charles Schwab has stepped out of its comfort zone with its latest ETF filing to plan for the launch of a thematic ETF.
Up until now, the issuer has focused exclusively on broad core asset classes. In fact, Schwab is the only one of the top five issuers to not include any sector ETFs in its lineup.
However, the planned Schwab Crypto Economy ETF is a thematic fund that will focus exclusively on companies from around the globe that operate in the cryptocurrency space, from simply trading cryptocurrencies and digital assets to providing technologies or applications that support the asset class.
Companies included in the fund’s underlying index are selected based on their scores regarding their relevance to the targeted theme, with liquidity and investability screens applied to eligible securities. The thematic score is also used to determine individual security weights within the index, the prospectus says.
The document specifically notes that the fund will not invest directly in cryptocurrencies or digital assets.
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