Fintech

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Global X FinTech ETF (FINX)

52-Week Range: $19.65 – $41.23
Expense Ratio: 0.68%, or $68 annually per $10,000 invested

Our next choice is an ETF, namely the Global X Fintech ETF.

The fund, which provides access to global firms in the emerging financial technology (fintech) sector, started trading in 2016.

Academic research by Itay Goldstein University of Pennsylvania points out that “FinTech is about the introduction of new technologies into the financial sector, and it is now revolutionizing the financial industry …

The scope of activity in FinTech started from mobile payments, money transfers, peer-to-peer loans, and crowdfunding, spreading to the newer world of blockchain, cryptocurrencies, and robo-investing.”

FINX, which has 33 holdings, tracks the the Indxx Global FinTech Thematic Index. These firms typically offer innovative mobile and digital solutions, disrupting established industries like insurance, investing, fundraising or third-party lending.

The top ten businesses make up about 60% of net assets of almost $800 million.

Square (NYSE:SQ), Australia-based Afterpay (OTCMKTS:AFTPY) and the Netherlands-based Adyen (OTCMKTS:ADYYF) lead the names in the fund.

Long-term investors may regard any potential drop in the price of FINX as opportunity to go long the fund.

Source: Investor Place