(STCE) Schwab Strategic Trust - Ratings and Ratios

The Schwab Strategic Trust - Schwab Crypto Economy ETF (NYSE ARCA: STCE) is designed to provide exposure to companies that are strategically positioned to benefit from the growth of the cryptocurrency economy. The fund does not directly invest in cryptocurrencies or digital assets but instead focuses on equities of companies involved in blockchain technology, digital payments, and other related sectors. The investment adviser employs a replication strategy to track the total return of its underlying index, which includes a diversified portfolio of companies across various industries that are contributing to the development and adoption of cryptocurrency technologies. As a non-diversified fund, it may have a higher concentration in certain sectors or companies compared to diversified funds.

From a technical perspective, the fund is currently trading below its key moving averages, with the SMA 20 at 45.01 and SMA 50 at 47.07, indicating potential short-term weakness. The SMA 200 at 41.11 suggests that the fund may find support near this level if the price continues to decline. The Average True Range (ATR) of 2.53 indicates moderate volatility, which could lead to significant price swings in the near term. The average volume of 79,315 shares over the past 20 days reflects relatively light trading activity, which may impact liquidity and price movement.

From a fundamental perspective, the fund has assets under management (AUM) of $103.51 million, which is relatively modest compared to other ETFs in the digital assets category. This smaller AUM could make the fund more sensitive to market movements and investor sentiment. The funds focus on the crypto economy aligns with the growing interest in blockchain and decentralized technologies, but it also exposes it to regulatory risks, adoption challenges, and the volatility inherent in the cryptocurrency space.

3-Month Forecast: Based on the current technical and fundamental data, the fund is expected to face headwinds in the short term due to its position below key moving averages. Support is likely to be tested near the SMA 200 at 41.11, while resistance may emerge at the SMA 50 level of 47.07. The ATR of 2.53 suggests that volatility will remain a factor, with potential price swings of up to 5-7% in either direction. Fundamentally, the funds performance will closely track the broader sentiment toward the cryptocurrency and blockchain sectors. If the crypto market experiences a rebound, the fund could see a moderate increase in price, potentially reaching the mid-to-high $40s. However, if the market remains bearish, the fund may consolidate near its current levels or decline further toward the SMA 200 support level.