|Bid||29.53 x 1000|
|Ask||29.60 x 1300|
|Day's Range||29.40 - 29.72|
|52 Week Range||20.66 - 31.29|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.68%|
While the best days of the famed FAANG (Facebook, Apple, Amazon, Netflix, Google) stocks may have been missed by investors, it’s important to note where the next growth spurt could be in the technology ...
Compared to other countries like China and India, there’s still much work to do in the U.S. Per a CNBC report, “Chinese mobile payments, for example, made up more than 80% of all purchases in the country last year, according to management consultancy Bain. How does the U.S. compare with other countries?
Technological advances are disrupting plenty of industries. And if ever there was an industry ripe for disruption, it is financial services. Enter financial technology, or "fintech." Along with healthcare innovation, fintech is arguably the most disruptive of the emerging themes encroaching on old school industries.A basic definition of fintech is computer programs or other technological components intersecting with old guard financial services, such as banking, lending and credit cards, but there's more to it."Today, fintech companies directly compete with banks in most areas of the financial sector to sell financial services and solutions to customers," according to Fintech Weekly. "Mostly due to regulatory reasons and their internal structures, banks still struggle to keep up with fintech startups in terms of innovation speed. Fintechs have realized early that financial services of all kinds -- including money transfer, lending, investing, payments, … -- need to seamlessly integrate in the lives of the tech-savvy and sophisticated customers of today to stay relevant in a world where business and private life become increasingly digitalized."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, when you buy a fintech exchange-traded fund, there's a better chance you'll be embracing stocks such as PayPal (NASDAQ:PYPL) and Square (NYSE:SQ) then you would be traditional banks like JPMorgan Chase (NYSE:JPM). * 10 Cheap Dividend Stocks to Load Up On With that in mind, here are some of the best fintech ETFs to consider. Global X FinTech ETF (FINX)Expense ratio: 0.68%, or $68 annually per $10,000 invested.Just a few weeks shy of its third birthday, the Global X FinTech ETF (NASDAQ:FINX) has rapidly become one of the kings of the fintech ETF universe. Home to nearly $414 million in assets under management, FINX tracks the Indxx Global FinTech Thematic Index.This fintech ETF's components come from industries including insurance, investing, fundraising and third-party lending. The financial services sector is usually thought of as a value destination, but that is not the case with fintech ETFs. FINX trades at a price-to-earnings ratio of 33.However, FINX warrants that rich multiple because it's up just under 30% year-to-date, which is more than double the returns of the S&P 500 Financial Services Index. Importantly, there are significant growth tailwinds bolstering the long-term case for this fintech ETF."Currently, FinTech represents just 6%, or approximately $675 billion, of the total global estimated annual revenue for the financial services industry," Global X said in a recent note. "In addition, a recent Global X survey of consumer adoption of disruptive technologies revealed that just 11% of consumers indicated that they use mobile wallets on at least a weekly basis, compared to 84% use of credit cards." ARK Fintech Innovation ETF (ARKF)Expense ratio: 0.75%ARK Investment Management offers a focused lineup of actively managed ETFs (and some passive funds) that address high-growth market segments and many of the firm's products, though pricey, are among the best performers in their respective categories. The ARK Fintech Innovation ETF (NYSEARCA:ARKF), which launched in February, could be on its way to joining its stablemates as a star fund.One of the newest fintech ETFs, ARK already has $71 million in assets under management and it has been a decent performer until recently. With riskier assets being taken to task, this fintech ETF has dropped by over 6% in the last month. That could be a buying opportunity, not a reason to stay away. The top 10 holdings in ARKF include Square, Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).Because it's actively managed, managers can apply more stringent criteria to defining and identifying fintech exposure. * 10 Stocks Under $5 to Buy for Fall "A company is deemed to be engaged in the theme of Fintech innovation if (i) it derives a significant portion of its revenue or market value from the theme of Fintech innovation, or (ii) it has stated its primary business to be in products and services focused on the theme of Fintech innovation," according to ARK's fund description for ARKF. Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF (LEND)Expense ratio: 0.65%The Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF (NYSEARCA:LEND) is another new addition to the fintech ETF fray, having debuted in May. As its name implies, this fintech ETF emphasizes crowdfunding, an expansive and growing segment of the fintech space."Crowdfunding is an umbrella term generally referring to the financing method, typically internet-based, by which capital is raised through the solicitation of small individual investments or contributions from a large number of persons, entities or institutions that lend money directly or indirectly to businesses or consumers," according to Amplify ETFs.LEND has recently struggled because of its hefty weight in China (45% of the fintech ETF's weight). That's a double-edged sword because China is home to its own rapidly growing, high-potential fintech market. Another thing to note with LEND is that it's a concentrated fintech ETF. The fund has 33 holdings, but just three combine for over half the fund's weight. ETFMG Prime Mobile Payments ETF (IPAY)Expense ratio: 0.75%The ETFMG Prime Mobile Payments ETF (NYSEARCA:IPAY) is the oldest of the fintech ETFs on the market today and the fund is aging nicely as highlighted by a year-to-date gain of more than 39%. Investors are taking note. IPAY now has nearly $830 million in assets under management thanks to year-to-date inflows of $361.1 million. IPAY holds 39 stocks and tracks the Prime Mobile Payments Index."The index provides a benchmark for investors interested in tracking the mobile and electronic payments industry, specifically focusing on credit card networks, payment infrastructure and software services, payment processing services, and payment solutions (such as smartcards, prepaid cards, virtual wallets)," according to ETFMG. * 15 Growth Stocks to Buy for the Long Haul IPAY is a fintech ETF that's approachable to a broad swath of investors because not only does the fund feature growth stocks, it has some large-cap value exposure via names like Dow Jones Industrial Average components American Express (NYSE:AXP) and Visa (NYSE:V). Innovation Shares NextGen Protocol ETF (KOIN)Expense ratio: 0.95%Blockchain technology is one of the bedrocks of the fintech movement and the Innovation Shares NextGen Protocol ETF (NYSEARCA:KOIN), though not a dedicated fintech ETF, is one of the more compelling blockchain funds on the market."… KOIN seeks to give investors access to companies that may benefit from a technology that has the potential to revolutionize the way global trade is conducted, data is secured, supply chains are managed, financial instruments are cleared and contracts are recorded," Innovation Shares says in KOIN's fund description.There is an element of cryptocurrency with KOIN as the fund features exposure to companies that accept digital coins as payments as well as firms that make the tools and hardware to mine assets such as bitcoin. KOIN's other categories are solutions providers (blockchain services providers) and adopters.KOIN's top 10 holdings including Nvidia, Visa and Mastercard (NYSE:MA). Global X Millennials Thematic ETF (MILN)Expense ratio: 0.5%The Global X Millennials Thematic ETF (NASDAQ:MILN) doesn't jump off the screen and scream "fintech ETF," but this demographically focused fund is in the fintech space, particularly because millennials are driving adoption of mobile payments and other elements of a cash-free society."Millennials' adoption of technology has penetrated their finances," Global X's Pedro Palandrani wrote. "Their mobile devices have become their credit card, their wallet, and their overall bank. Take Venmo, PayPal's mobile payment service, which is a platform that has struck a chord with Millennials by allowing them to digitally send money and make purchases. 75% of Millennials have used online or mobile payments compared to only 51% for Boomers." * 7 Safe Dividend Stocks for Investors to Buy Right Now The fund holds 81 stocks of which about five can be considered dedicated fintech plays. Another 10 or so can be viewed as secondary fintech names. SoFi Gig Economy ETF (GIGE)Expense ratio: 0.59%The SoFi Gig Economy ETF (NASDAQ:GIGE) is another actively managed fund with fintech exposure and a newer one at that, having debuted in May like LEND."… the Gig Economy reflects a transformational change in how many businesses interact with customers, and the Gig Economy theme provides exposure to a trend or developing business model through the compilation of securities from multiple sectors and geographies," wrote ETF Trends's Max Chen.Obviously, GIGE is not a dedicated fintech ETF. But because it is exposed to the gig economy's consumption end, the fund features exposure to the payment end as well. This translates to some fintech leverage.About half a dozen of GIGE's holdings are dedicated fintech names and roughly the same amount are larger companies with some form of mobile payment or mobile wallet business. While GIGE has struggled this month (down almost 7%), there is long-term value in the fund's mix of fintech and online retail names.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure appeared first on InvestorPlace.
Every market move as of late has been mostly about trade wars and yield curves, but the Russell 2000 small cap index could be telling its own story. What small cap equities are doing could be a strong indicator of where the next market move is headed. “The Russell 2000 small-cap index has been a great leading indicator for the stock market in both directions, and we saw it last year before the big decline in the stock market in the fourth quarter, ” said Matt Maley, equity strategist at Miller Tabak.
The performance between small cap equities versus large cap equities is seeing a larger gap than ever before, which could be signaling that something is awry in the economy. Nonetheless, exchange-traded ...
Here we discuss the impact of PayPal's Q2 earnings results on certain ETFs with high exposure to the global technology platform and digital payments leader.
Among thematic exchange traded funds, the Global X FinTech ETF (NasdaqGM: FINX) is proving to be a star this year with a gain of nearly 38%. Some fundamental factors indicate FINX could still be in the ...
A decent number of exchange traded funds hit record highs Thursday as the Dow Jones Industrial Average topped 27,000 for the first time. Included in that group were nearly all of the fintech funds trading ...
NEW YORK , July 10, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of three additional ETFs to Schwab ETF OneSource, one ...
The Global X FinTech ETF (NasdaqGM: FINX) is up nearly 34% year-to-date and is trouncing traditional financial services exchange traded funds in the process. FINX, which is nearly three years old, tracks ...
Square (NYSE:SQ) is one of the dominant names in the fast-growing mobile payments market and while the stock has, at various points, reflected expectations for that rapid growth, Square stock is not an easy money play.Source: Chris Harrison via Flickr (Modified)Square is up more than 28% year-to-date, that performance is unimpressive when measured against a broader basket of fintech stocks. For example, the Global X FinTech ETF (NASDAQ:FINX) is up more than 32.32% this year. Additionally, Square stock resides 29% below its 52-week, putting the shares deep into bear market territory.As of this writing, Square stock is just under $72, indicating that if analysts' are anywhere close to their assessments on the name, most of which are bullish, there could be considerable upside for the shares. The average analyst price target on Square is nearly $83.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Stocks to Buy for $20 or Less New Markets, New ChallengesWhen Square first started out, the company's bread and butter was small business owners looking for ways to get paid faster. Think hair stylists, landscapers, pet-oriented businesses and other entrepreneurs with mobile businesses that were processing large amounts of transactions, but at small to medium dollar amounts per swipe.So for Square stock to be attractive over the long-term, the company needs to forge into markets, and those areas are chock full of well-heeled competitors."We contend the limits of these attributes will be tested as it moves into restaurants and other complex verticals," SunTrust Robinson Humphrey analyst Andrew Jeffrey said in a note out in April.Square has built competitive advantages in the market for credit and debit card readers that operate through mobile phones. Ask most investors to name another company that competes in this arena and they may struggle to answer, but getting into more conventional, brick-and-mortar businesses brings opportunity and potential risks for Square stock.Square continues to grow at a very fast rate, with adjusted revenue up 49% year over year," said Morningstar in a recent note. "The business is transitioning as the company builds out more ancillary products, with transaction-based revenue up a relatively modest 26% and subscription and service-based revenue up 97%, excluding acquisitions."The research firm has a $49 fair value estimate on Square stock.Some analysts are more bullish, but investors should query why. Square stock could get a lift from its reward card known as boost, but are 10% discounts at select restaurants and coffee stops enough to move Square stock. Apparently, some on the sell side think the answer is "yes."KeyBanc's Josh Beck "thinks that Square will compound annual revenue growth of about 35% over the next three years and will hit have a 26% margin by 2021. His target price is $100 a share, which represents about 40% upside," reports Barron's. Bottom Line on Square StockMuch of the bull thesis for Square stock revolves around the Cash app, a mobile app that customers use to send money to friends, family, etc. Square's Cash app competes with Venmo, operated by PayPal (NASDAQ:PYPL); and Zelle, a money transfer service offered by a slew of major U.S. banks. Analysts are enthusiastic regarding Cash app's prospects.Another area underscoring the risk/reward with Cash app is how Square frame the app. Beyond being a payment transfer option, Square wants customers to think of and use Cash app like a traditional bank.Square is "still working with the Federal Deposit Insurance Corporation on receiving a banking charter. That would allow Square to expand the types of lending and deposit business it can do without a banking partner," according to Barron's."We believe Cash App--and Cash Card in particular--will drive upside to SQ revenue estimates over time as user engagement increases, and platform growth expands," said Barclays's Ramsey El-Assal in a recent note. "While SQ has remained guarded regarding Cash App user statistics, we believe enough distinct data points have been released to allow us to put together a more complete model of Cash App revenue performance."Still, there are concerns with Cash app, too. Notably, Square is a latecomer to this space, arriving here after Venmo and Zelle, meaning the perhaps the most legitimate opportunity for Cash app to pilfer market share from its rivals is to offer lower fees, meaning lower margins for Square."We continue to believe that Square's relatively late entry into the space and the existing consumer customer bases at Venmo (PayPal) and Zelle (the banks) leaves it as the most poorly positioned among the leading platforms from a long-term perspective," said Morningstar. "As such, we think the future of this business hinges on how many platforms ultimately remain viable, and we continue to believe Cash App could prove to be a distraction from more achievable growth opportunities closely related to the core acquiring business."Square is a well-known name in a compelling market niche, but even with its recent declines, Square stock is not particularly cheap. For now, investors may be able to find better opportunities in the fintech space, including PayPal.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post Square Stock Is Not the Easy Money You Might Think It Is appeared first on InvestorPlace.
"Clearly, technological innovation is causing intensifying consolidation in the electronic payment services market, while the acquisition of data on customer's purchasing and behavior trends further drives fintech acquisitions," wrote Dealogic associate Chisa Tanaka. Additionally, the payment processing space is seeing a growing number of big bets placed by venture capitalists, which could give fintech exchange-traded funds (ETFs) a boost. Payments are increasingly going digital with a number of start-ups seeing venture capital seed money to help facilitate online purchases.
Though there has been a bloodbath in the tech space in May due to escalating trade tensions, some ETFs stood out on their inherent strength and more solid investment objectives.
The payment processing space is seeing a growing number of big bets placed by venture capitalists, which could give financial technology exchange-traded funds (ETFs) a boost. It’s a $1.9 trillion industry ...
The Global X FinTech ETF (FINX) is up nearly 30% year-to-date and is trouncing traditional financial services exchange traded funds along the way. FINX, which is nearly three years old, tracks the Indxx Global FinTech Thematic Index. Electronic and mobile payments are expected to be key drivers of fintech growth in the coming years and it appears some market observers are awakening to the potential offered by some FINX holdings.
As trade tensions between the U.S. and China reach a boiling point, stocks are getting pummeled. The S&P 500 had shed as much as 5% from its recent highs.In times like these, it is not surprising that many investors get defensive and look to reduce their portfolio's volatility via safer asset classes. It is reasonable and probably advisable that amid international headline risk, investors lean toward safer assets and the related exchange-traded funds (ETFs). However, there is another benefit to market declines, such as the current one, that take place within the confines of a bull market: investors can scoop up some compelling assets at favorable prices.Those compelling assets that have recently been discounted may include thematic ETFs. Within that space, are some interesting fintech ETFs that offer tactical investors a refreshed, growthier approach to the normally staid financial services sector.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Trade War Stocks With a Lot of Risk A base definition of fintech is a financial service that is rooted in technology, but the industry is sprawling and encompasses myriad everyday financial functions, including traditional banking and lending, sending and receiving payments, investing and much more.Here are some of the best fintech ETFs to consider for investors looking to buy on the dip. Fintech ETFs to Consider: Global X FinTech ETF (FINX)Expense Ratio: 0.68% per year, or $68 on a $10,000 investment.The Global X FinTech ETF (NASDAQ:FINX) is one of the entrenched names among fintech ETFs, but owing to the nascent nature of the fintech industry, FINX does not turn three years old until September. Home to about $348 million in assets under management, FINX tracks the Indxx Global FinTech Thematic Index.FINX member firms hail from industries "like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions," according to Global X.FINX holds 37 stocks and investors should note that only a scant percentage of the fund's holdings are officially classified as financial services firms. Rather, over 85% of FINX's holdings are data processing firms and software providers, meaning this fintech ETF is almost a tech fund. This fintech ETF is cap-weighted and its top 10 holdings combine for approximately 60% of its weight."While some might argue that in the aggregate smaller companies offer higher growth opportunities than larger companies and therefore warrant more exposure than a market cap weighting scheme offers, we do not always find this to be the case in disruptive industries," according to Global X research. "Using history as our guide, recent powerful themes have demonstrated that larger companies enjoy enormous benefits due to economies of scale and network effects." ETFMG Prime Mobile Payments ETF (IPAY)Source: Pabak Sarkar via FlickrExpense Ratio: 0.75%At nearly four years old, the ETFMG Prime Mobile Payments ETF (NYSEARCA:IPAY) is the oldest of the fintech ETFs available in the U.S. This $475 million fintech ETF tracks the Prime Mobile Payments Index.As its name implies, IPAY focuses on the mobile payments niche, giving the fund a narrower focus than the aforementioned FINX, but compelling exposure nonetheless. With the emphasis on mobile payments, IPAY's top 10 holdings are not surprising. The group includes PayPal (NASDAQ:PYPL), Square (NYSE:SQ) and each of the four major U.S. credit card issuers.IPAY is a play on mobile payments growth and the growth estimates for this market are staggering. * 7 Dividend Stocks to Buy as the Trade War Reignites "A study conducted by Allied Research found that the mobile payment market is anticipated to grow at a compound annual growth rate (CAGR) of 33.8% from 2017 to 2023 reaching a market size of $4,574 billion by 2023," according to IPAY's issuer. Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF (LEND)Source: Shutterstock Expense Ratio: 0.65%The Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF (NYSEARCA:LEND) debuted last week, making it the newest member of the fintech ETF fray. LEND targets the CrowdBureau Peer-to-Peer (P2P) Lending & Equity Crowdfunding Index.That benchmark "is comprised of companies that 1) operate the platforms that facilitate P2P lending and investment-based crowdfunding, and 2) provide the technology & software that enable the operation of these platforms," according to Amplify ETFs.Much like IPAY, LEND is a niche fintech ETF with focus being crowdfunding and peer-to-peer lending. More than the other funds highlighted here, LEND provides exposure to ex-U.S. fintech opportunities by allocating half its weight to emerging markets stocks.LEND is heavily allocated to just three stocks -- LendingTree (NASDAQ:TREE), Qudian (NYSE:QD) and LexinFintech Holdings (NASDAQ:LX). That trio combines for nearly 52% of the new fintech ETF's weight."Crowdfunding is an umbrella term generally referring to the financing method, typically internet-based, by which capital is raised through the solicitation of small individual investments or contributions from a large number of persons, entities or institutions that lend money directly or indirectly to businesses or consumers," according to Amplify. Tortoise Digital Payments Infrastructure Fund (TPAY)Source: Shutterstock Expense Ratio: 0.4%Having debuted in February, the Tortoise Digital Payments Infrastructure Fund (CBOE:TPAY) is one of the newer fintech ETFs and one of the group's hidden gems. TPAY tracks the Tortoise Global Digital Payments Infrastructure Index, giving the fund a fairly broad fintech reach.TPAY's underlying index is "comprised of companies that are materially engaged in digital payments, including merchant processing and settlement, real time record keeping, settlement networks, and Fintech products/services that facilitate the ease, efficiency, and speed of electronic transactions," according to Tortoise. * 7 Cloud Stocks to Buy on Overcast Days Due in part to a significantly lower fee, TPAY could be a credible alternative to the aforementioned IPAY because, by weight, the overlap between those two fintech ETF is 68%. ARK Fintech Innovation ETF (ARKF)Source: Shutterstock Expense Ratio: 0.75%The ARK Fintech Innovation ETF (NYSEARCA:ARKF) also debuted in February and this actively managed fintech ETF is off to an impressive start, having already accumulated $57 million in assets under management. That is an impressive sum for a thematic ETF that is just 90 days old. ARKF is an actively managed fund. In some cases, that would not be a selling point, but several of ARK's other actively managed ETFs have stellar track records of soundly beating broader equity benchmarks.Typically, ARKF will hold between 35 and 55 stocks. On the lower end, that is mostly inline with other fintech ETFs, but on the higher end, ARKF could periodically have a larger roster than rival fintech ETFs. An advantage of ARKF being actively managed is that although its roster is unlikely to significantly exceed 55 stocks, the fund's fintech reach is broad and includes blockchain, funding platforms, risk transformation and other fintech niches that are not represented in all of the aforementioned funds.ARKF's largest holding is Square, but the fund also features Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) among its top 10 holdings. Those companies have significant mobile payments exposure. Apple is even getting into the credit card business, but the fintech footprints of Apple and Amazon are usually ignored by passively managed fintech ETFs.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post 5 Fantastic Fintech ETFs to Consider appeared first on InvestorPlace.
A malware attack on tax and accounting software giant Wolters Kluwer is sparking concerns regarding the security of sensitive information, such as tax return and financial information stored on its cloud computing servers. As technology in the financial world continues to develop, security will emerge as an important focus in fintech. Wolters Kluwer provides software technology to the top 100 accounting firms in the U.S., as well as 90% of top global banks and 93% of Fortune 500 companies, according to the company web site.
Financial technology, as some might say, is too important to be left to the financiers. Indeed, it is hard to find a sector of the economy that hasn't been touched by financial technology innovations, including the insurance, fundraising and third-party lending sectors, notes Jim Woods, editor of The Deep Woods.
As more investors grow comfortable with the exchange traded fund investment vehicle, many are looking at niche or so-called thematic ETFs that help further hone in on potential market opportunities. “I ...
The U.S. stock rally appears to have stalled out ahead of earnings season, but Jay Jacobs believes there is investor demand for more specialized sectors. Yahoo Finance's Adam Shapiro and Julie Hyman join Heritage Capital President Paul Schatz and Global X SVP & Head of Research and Strategy Jay Jacobs to discuss Global X ETFs.