BCDF vs STCE

BCDFDHorizon Kinetics Blockchain Development ETF

STCEASchwab Crypto Thematic ETF

In short

BCDF Horizon Kinetics skips the index and picks its own blockchain names: roughly 30 companies, actively chosen, with at least 80% of assets pledged to the theme. A concentrated, opinionated take in a corner of the market built mostly on baskets.

STCE Crypto exposure without owning a coin. STCE holds about 40 global companies tied to digital assets and blockchain, chosen by Schwab's own index, at a price that undercuts most thematic funds.

Stated mandate

BCDF The Fund seeks long-term growth of capital through active investment in Blockchain Development Companies. Under normal circumstances, it invests at least 80% of net assets plus investment borrowings in those companies.

STCE The fund seeks to track, before fees and expenses, an index providing global exposure to companies that may benefit from developing or using cryptocurrencies and other digital assets, or from business activities tied to blockchain and distributed-ledger technology.

Why people hold it

• BCDF Actively run, not index-shadowing. A manager chooses the roughly 30 holdings and can shift as the blockchain buildout does, instead of inheriting whatever a rules-based screen spits out.
• The theme is a contract, not a label: the prospectus commits at least 80% of net assets plus borrowings to blockchain development companies.
• Roughly 30 names means each pick carries real weight in the portfolio, a sharp contrast to the sprawling thematic baskets that dilute their best ideas.
• Live since 2022, so it has a real operating record through crypto's ugliest stretch, not a backtest. Standard 1940 Act fund wrapper: 1099 tax reporting, no K-1.

• STCE Charges 0.30% a year, roughly half the typical fund in its global thematic group. Schwab billed it as the lowest-cost crypto-related ETF when it launched in 2022.aboutschwab.com
• Stocks, not coins: the index targets companies worldwide that may benefit from cryptocurrencies, digital assets and distributed-ledger technology.schwabassetmanagement.com
• Cheap, straightforward and liquid enough for a niche theme, which puts it in the top quartile of its global thematic peer group.

Worth knowing

• BCDF 0.85% a year sits above the typical blockchain-equity fund, and above index rivals like BKCH at 0.50% and BLOK at 0.70%. Active stock picking is what the premium buys.
• A small fund that trades lightly. Spreads can run wider than on the category's heavyweights, which matters most on large or hurried orders.
• Distributions land once or twice a year rather than quarterly or monthly, so any income arrives lumpy. This is a growth-of-capital mandate, not an income one.

• STCE Crypto-linked equities move violently, and with roughly 40 non-diversified names, a stumble at one holding is felt across the fund.aaii.com
• It owns crypto-adjacent businesses, not bitcoin, so its path can diverge from the coins themselves in either direction.aaii.com
• Modest asset base by ETF standards and distributions land only once or twice a year, so this is a theme sleeve rather than an income holding.

Full BCDF profile⁠

Full STCE profile⁠