Page 48 - Investment Advisor September 2022

PORTFOLIO & ETF PERSPECTIVES

back 75 years ago, Siegel noted. “Now that in history,” he said. The possible Siegel wondered how to understand
the government is telling us with recent good news is that a bounce-back to a the GDP drop while the economy added
data that the second quarter … is almost more normal level would slow inflation, 2.7 million jobs. “You have to try to
as bad as the first quarter. “because obviously less productivity figure some of this data out before
This is unprecedented. We have equals more inflation, high productivity you make rash moves on the monetary
never seen a collapse of productivity like less inflation.” front,” he said.

Schwab Launches Its First Crypto-Related ETF

harles Schwab has introduced supporting cryptocurrency or other digi- of its premier advisory solution that was
its first cryptocurrency-related tal asset use in buying and selling goods or started two decades ago from Schwab
CETF, offering investors global services; and developing or implementing Private Client to Schwab Wealth Advisory.
exposure to companies that the firm blockchain technology applications. The planned change, first announced by
expects will benefit from development the firm June 16, became effective July 1.
of cryptocurrencies and other digital OTHER ISSUES The name change was made to “bet-
assets. Schwab’s asset management arm Schwab Asset Management announced in ter reflect the depth of wealth advisory
launched the Schwab Crypto Thematic mid-June that it was reducing the operat- experience, dedicated service, and ongo-
ETF (NYSE Arca: STCE) on Aug. 4. ing expense ratios of 10 passively managed ing enhancements to investing solutions
The fund aims to track Schwab Asset ETFs and actively managed mutual funds. delivered to its more than 70,000 house-
Management’s new proprietary Schwab These changes come six months holds representing” about $146 billion in
Crypto Thematic Index and will log the after fee reductions involving five fixed assets as of Dec. 31, Schwab said in June.
lowest annual operating expense ratio — income ETFs. Also, in February, the net The change was “clearly a signal to
0.30% — currently available among cryp- operating expense ratio of the Schwab the marketplace that Schwab wants to
to-related ETFs, the company says. The International Opportunities Fund compete more broadly with a full-service
index does not directly track or invest in (SWMIX), an actively managed mutual offering, something they have never had
cryptocurrencies, it adds. fund, declined from 1.25% to 0.83%. before,” according to Timothy Welsh, CEO,
“For investors who are interested in “We continually review our cost-effec- president and founder of Nexus Strategy.
cryptocurrency exposures, there is a tive product suite to find new opportuni- Andy Tasnady, managing partner of
whole ecosystem to consider as more ties to lower expenses for investors,” Tasnady Associates, explained: “The
companies seek to derive revenue from according to Botset. “We’re committed to name change does exude a broader more
crypto directly and indirectly,” David delivering products that are affordable, inclusive feel (not just high end ‘Private
Botset, managing director, head of equi- accessible and scalable, and very pleased Clients’). At the same time it also opens
ty product management and innovation to be able to continue to make our clients up the ‘Advisory’ aspect of their options
at Schwab Asset Management, said in a the beneficiaries of our strategic focus.” to their historic self-directed client
press release in late July. The ETFs with fees that fell in July are branding positioning. So it should be
“The Schwab Crypto Thematic ETF the Schwab Short-Term U.S. Treasury good for business in two ways.”
seeks to provide access to the growing ETF (SCHO), Schwab Intermediate- SPC was launched in spring 2002
global crypto ecosystem along with the Term U.S. Treasury ETF (SCHR), to meet the needs of clients searching
benefits of transparency and low cost Schwab Long-Term U.S. Treasury ETF for “holistic investment management,”
that investors and advisors expect from (SCHQ), Schwab 1-5 Year Corporate Schwab noted. There have been no
Schwab ETFs,” he explained. Bond ETF (SCHJ), Schwab 5-10 Year changes to client service, relationships
Rather than directly tracking crypto- Corporate Bond ETF (SCHJ), Schwab or cost associated with the name change,
currencies, the index will focus on compa- U.S. Aggregate Bond ETF (SCHZ) and the firm said, pointing out that the annu-
nies that could profit from crypto-related Schwab U.S. TIPS ETF (SCHP). Fees on al fee for the program now starts at
business activities, including facilitating six of these funds declined from 0.04% 0.80% of billable assets and the fee rate
others in validating consensus mecha- to 0.3%, while the fee on the TIPs ETF declines at higher asset levels.
nisms — mining or staking, for example — dropped from 0.05% to 0.04%.
for investing in or trading digital assets; Also in July, Schwab changed the name —Dinah Wisenberg Brin and Jeff Berman

44 INVESTMENT ADVISOR SEPTEMBER 2022 | ThinkAdvisor.com