Would STCE stock be good to buy and hold over the weekend?
7/20/2024 02:53am
**Schwab Crypto Thematic ETF (STCE) does not appear to be a suitable stock for buy and hold over the weekend.** Here's why:
1. **Underperformance**: STCE has significantly underperformed the market, with a net expense ratio of 0.30%. The cumulative returns since inception are negative, indicating that the ETF has not generated any value for investors.
2. **Market Performance**: The performance of STCE is highly volatile, with significant fluctuations in price. The ETF has a high beta value, indicating that it is more volatile than the market.
3. **Inadequate Returns**: The annualized returns of STCE are lower than the industry average, and the YTD returns are negative. This suggests that the ETF is not generating sufficient returns to compensate for the expense ratio.
4. **Regulatory Challenges**: The crypto industry is highly regulated, and any changes in regulations could have a significant impact on the performance of STCE. The ETF's investment strategy is based on a theme that is subject to rapid changes and market volatility.
5. **Insider Transactions**: There have been significant insider transactions, with the CEO and other insiders selling off large amounts of stock. This could be seen as a lack of confidence in the company's future prospects.
In conclusion, STCE presents a high-risk investment due to its underperformance, volatility, and potential regulatory challenges. The company's investment strategy is based on a theme that is highly speculative and subject to rapid changes. Investors should consider their risk tolerance and investment goals before buying and holding STCE over the weekend. It's also advisable to monitor the ETF closely for any updates or changes in market conditions that could affect the ETF's performance.