Schwab Crypto ETF Renamed to Reflect NLP Methodology

The Schwab Crypto ETF has undergone a name change, reflecting its reliance on natural language processing (NLP) software to pick holdings. The new name is STCE Natural Language Processing Index, and it still carries the same ticker symbol, STCE.

NLP software analyzes company filings and reports, identifying keywords and patterns that inform investment decisions. This method has led to some surprising inclusions on the ETF's list of top holdings, with Trump Media Technology Group ranking second behind Bitdeer Technologies at 5.77%.

The Schwab Crypto ETF does not invest directly in cryptocurrencies but instead holds shares in companies tied to the sector, including miners and exchanges. The fund has undergone significant changes since its inception, with software company holdings growing from 27.3% of the portfolio to 61% over a four-year period.