What this ETF is trying to do

The SCHWAB CRYPTO THEMATIC ETF (ticker: STCE) is an exchange-traded fund designed to invest in companies related to the crypto theme. Based on its top holdings, the fund focuses on various companies involved in digital assets and blockchain technology.

What the numbers show

The data shows that STCE has experienced significant changes in its share price over different time periods.

• Year-to-Date (YTD): The price return is approximately -1.38%.

• One-Year: The one-year price return is approximately -36.32%.

• Three-Year: The three-year price return is approximately 207.92%.

It is important to distinguish between price return and total return. Price return only measures how much the share price moved. Total return includes both price changes and any distributions (cash payments) made to investors.

• One-Year Total Return: Approximately -35.33%.

• Three-Year Total Return: Approximately 215.68%.

An estimated price from roughly one year ago was $92.86, while the current price is $59.13.

Top Holdings

The following are some of the top holdings in this fund (note that this is a partial list):

• BITDEER TECHNOLOGIES GROUP: 6.85%

• HIVE DIGITAL TECHNOLOGIES LTD: 5.43%

• GALAXY DIGITAL INC: 5.30%

• CLEANSPARK INC: 5.23%

• BITMINE IMMERSION TECHNOLOGIES INC: 4.76%

• HUT 8 CORP: 4.67%

• MARA HOLDINGS INC: 4.66%

• TRUMP MEDIA & TECHNOLOGY GROUP CORP: 4.60%

• CORE SCIENTIFIC INC: 4.13%

• COINBASE GLOBAL INC: 4.00%

Income and distribution explanation

STCE has a distribution yield of approximately 1.92%. This number describes the cash distributions relative to the ETF's price. The fund has had one distribution in the last 12 months, and its payout frequency is described as irregular or less frequent.

Investors should remember that a distribution yield is not the same as total return. A high yield does not guarantee that an investor will earn that percentage in overall profit.

NAV erosion explanation

The fund has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration and a weak erosion score. Specifically, the fund has an erosion score of 30, which is labeled as "Significant price erosion."

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While the market price has declined significantly over the last year, we cannot use this alone to prove that the Net Asset Value (NAV) itself has declined.

Pros

• Strong Long-Term Price Return: The three-year price return shows a significant increase of approximately 207.92%.

Cons

• Significant Price Erosion: The fund shows a high risk of price deterioration.

• Recent Performance: The one-year price return has been negative by approximately 36.32%.

• Low Income Rating: The fund has an income rating grade of "F."

Beginner takeaway

STCE is a thematic ETF focused on the crypto sector. While it has shown very high returns over a three-year period, it has also experienced a sharp share-price decline over the last year. Because of this price movement, it has triggered a severe erosion-risk flag. Always remember that high distribution yields do not protect against a falling share price.