|Bid||0.00 x 900|
|Ask||0.00 x 1400|
|Day's Range||29.18 - 29.46|
|52 Week Range||20.66 - 29.58|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.68%|
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.
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 ...
International financial services provider Fidelity National Information Services agreed on Monday to purchase payment processing company Worldpay for $34 billion, making it the biggest deal thus far in ...
It is a question that constantly challenges issuers of new exchange traded funds: how should those funds be weighted? Cap-weighted ETFs remain dominant in the ETF space, but there are hundreds of equal-weight ...
As measured by the SPDR S&P 500 ETF (NYSEARCA:SPY), the world's largest exchange-traded fund (ETF), domestic stocks are off to fine starts this year. SPY is up nearly 11%. Of course, some of this year's best-performing ETFs are delivering returns well in excess of basic benchmarks like the S&P 500.There are over 2,300 exchange-traded products listed in the U.S., but when adding qualifiers in search of the best-performing ETFs, such as funds up at least 15%, the field significantly narrows.Predictably, many of this year's best-performing ETFs are thematic or niche funds that follow narrow investment segments.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dow Jones Stocks to Buy This list of 2019's best-performing ETFs so far excludes leveraged funds because leveraged ETFs, no matter how tantalizing the returns, are not designed to be held for more than a few days. Without further ado, here are 10 of the best-performing ETFs to this point in 2019. Best-Performing ETFs: ETFMG Alternative Harvest ETF (MJ)Expense Ratio: 0.75% per year, or $75 on a $10,000 investment.The ETFMG Alternative Harvest ETF (NYSEARCA:MJ) has recently pulled back in modest fashion, but still sports a year-to-date gain of 43%, more than enough to make the cannabis fund one of this year's best-performing ETFs.Even with its meteoric ascent to start 2019, MJ could have plenty of upside left because it resides more than 19% below its 52-week high, underscoring how badly the fund was drubbed last year. A variety of catalysts are propelling MJ, the only dedicated cannabis ETF in the U.S., higher this year. Those include increased state-level legalization and the expected boom in the cannabidoil (CBD) market."The CBD market could represent a $16-billion opportunity by 2025, according to a report issued Monday by a team of Cowen analysts," reports ETF Daily News. "The findings are based on a roughly 40-percent increase in consumer incidence with the average user spending $640 -- or less than $2 per day -- each year." KraneShares Bosera MSCI China A ETF (KBA)Expense Ratio: 0.6%Chinese ETFs, including the KraneShares Bosera MSCI China A ETF (NYSEARCA:KBA) were already soaring, but got a major boost in late February when index provider MSCI said will increase the weight of A-shares in its international indexes, including the widely followed MSCI Emerging Markets Index.That news helped KBA affirm its status as one of 2019's best-performing ETFs, because the fund follows the MSCI China A Inclusion Index. That benchmark is chock full of the A-shares names MSCI is adding to its benchmarks. A-shares are the stocks trading on mainland China. * 9 Trade War Stocks to Sell on U.S.-China Deal News "MSCI is incrementally realigning China's overall weight in their Global Standard Indexes through the inclusion process, and upon completion, China A-Shares are predicted to account for about 16% of the MSCI Emerging Market (EM) Index which is tracked by $1.8 trillion in assets," according to KraneShares. "This will gradually increase China's overall weight, including Hong Kong and US listed Chinese companies, from 30% to over 40% of the MSCI Emerging Market Index." Reality Shares Nasdaq NexGen Economy China ETF (BCNA)Expense Ratio: 0.78%Keeping with the theme of China funds being among this year's best-performing ETFs, there is the Reality Shares Nasdaq NexGen Economy China ETF (NASDAQ:BCNA), which is up over 33% this year. BCNA follows the Reality Shares Nasdaq Blockchain China Index.That index "is designed to measure the returns of companies in China that are committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their use or for use by others," according to Reality Shares.While there is still plenty of time left in 2019, BCNA's start to the year affirms the notion that blockchain stocks and ETFs do not necessarily need bitcoin to move higher in order to notch gains themselves. Bitcoin, the largest cryptocurrency by market value, has traded only modestly higher this year. ProShares Long Online/Short Stores ETF (CLIX)Expense Ratio: 0.65%The ProShares Long Online/Short Stores ETF (NYSEARCA:CLIX) is up 20% this year. Importantly, there are credible reasons why CLIX is one of this year's best-performing ETFs."Short stores" is an operative phrase in the fund's title, particularly at a time when more than 2,200 store closures have been announced barely more than two months into 2019. Other data points confirm the move to online shopping, the long component in CLIX. * 7 Chinese Stocks to Buy for the 2019 Rebound "Consumers spent $517.36 billion online with U.S. merchants in 2018, up 15.0% from $449.88 billion spent the year prior," according to a new Internet Retailer analysis of industry data and historical U.S. Commerce Department figures. "That's a slight slowdown from 2017, when online sales grew 15.6% year over year, according to Commerce Department figures." Global X FinTech ETF (FINX)Expense Ratio: 0.68% The future of financial services is fintech and the Global X FinTech ETF (NASDAQ:FINX) proves as much. FINX is higher by almost 21% this year, making it one of the best-performing ETFs. Impressively, FINX is beating the largest traditional financial services ETF by a 2-to-1 margin this year.Mobile payments, the move away from cash, industry consolidaiton and international growth opportunities are among the fundamental factors bolstering FINX."Recent M&A in the payments industry and growing retailer adoption of cashless transactions further confirms the U.S. payment industry's growth prospects," according to Fitch Ratings. "Strong demand for electronic payments capabilities and related technology should support industry fundamentals for merchant acquirers, card processors, network operators, and technology and gateway providers, but large-scale acquisitions may have credit implications." Global X MSCI Colombia ETF (GXG)Expense Ratio: 0.61%The Global X MSCI Colombia ETF (NYSEARCA:GXG), the original Colombia ETF, is one of this year's best-performing ETFs tracking an international market and is higher by more than 23%. Rising commodities prices and strength in the broader emerging markets complex are among the forces at play with GXG.This year, GXG is handily outperforming the major Argentina, Brazil, Mexico and Peru ETFs, underscoring its status as one of the best-performing ETFs. Colombia, one of South America's largest economies, is decreasing its dependence on oil revenue. * 7 March Madness Stocks to Consider for the Big Dance Colombia's "services sector, which comprises a majority of its GDP and labor market, are evidence of an economy that is well into a transition phase," according to Global X research. "Oil revenues should continue to fuel growth, but consumption and non-traditional exports, which include services, renewable energy, and agriculture, are expected to become a greater source of growth as the country expands its infrastructure and increases productivity." iShares U.S. Oil Equipment & Services ETF (IEZ)Expense Ratio: 0.43%For believers in the energy sector's 2019 resurgence, the iShares U.S. Oil Equipment & Services ETF(NYSEARCA:IEZ)is a solid ETF to consider. Up more than 18%, it is also one of 2019's best-performing ETFs. IEZ follows the Dow Jones U.S. Select Oil Equipment & Services Index.The reason this is one of this year's best-performing ETFs is simple: oil services stocks and funds are usually highly correlated to oil prices, in both directions. Oil is among this year's leading commodities. Hence, IEZ is one of this year's best-performing ETFs.The fund holds 40 stocks, but over 26% of its combined weight is allocated to just two names: Schlumberger (NYSE:SLB)and Halliburton (NYSE:HAL). Invesco Solar ETF (TAN)Expense Ratio: 0.7%Seasoned solar investors know that the Invesco Solar ETF (NYSEARCA:TAN) historically gets it own boost from higher oil prices. Put simply, higher oil prices are seen as driving demand for alternative, cleaner, less-expensive energy sources, and solar checks those boxes. * 7 Dow Jones Stocks to Buy In other words, with oil surging, it is not surprising that TAN is one of this year's best-performing ETFs with a gain approaching 30%. The fund, however, is off more than 4% over the past week and could be vulnerable to a "sell the news" event if the U.S. and China finally reach a legitimate trade truce because China accounts for over 29% of TAN's geographic weight. SPDR S&P Software & Services ETF (XSW)Expense Ratio: 0.35%Tech funds are rebounding. Just look at the SPDR S&P Software & Services ETF (NYSEARCA:XSW), which is higher by almost 21% this year.XSW "seeks to provide exposure to the software and services segment of the S&P TMI, which comprises the following sub-industries: Application Software, Data Processing & Outsourced Services, Home Entertainment Software, IT Consulting & Other Services, and Systems Software," according to State Street.XSW is an equal-weight ETF so its 153 holdings are not dominated by large- and mega-cap software makers. Those holdings have a weighted average market value of $22.48 billion, which is low compared to rival cap-weighted funds. Global X E-commerce ETF (EBIZ)Expense Ratio: 0.68%Some new ETFs are not well-timed. The opposite is true of the Global X E-commerce ETF (NASDAQ:EBIZ), which debuted last November, making it the newest fund on this list. Rookie status aside, EBIZ is one of this year's best-performing ETFs as highlighted by a gain of 23%.Timing is not everything, but it is helping EBIZ. * 9 Trade War Stocks to Sell on U.S.-China Deal News "Ecommerce represented a growing share of the retail market in 2018, taking a 14.3% share of total retail sales last year, up from 12.9% in 2017 and 11.6% in 2016," notes Digital Commerce 360. "More significant is that ecommerce sales represented more than half, or 51.9%, of all retail sales growth. This is the largest share of growth for purchases made online since 2008, when ecommerce accounted for 63.8% of all sales growth."As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Should Be Worried About a Data Dividend * 5 Cheap ETFs Worth Considering * 7 Cheap Stocks Under $5 That Could Soar Compare Brokers The post The 10 Best-Performing ETFs This Year appeared first on InvestorPlace.
The Global X FinTech Thematic ETF (NasdaqGM: FINX), the first exchange traded fund dedicated to the fast-growing fintech space, is up almost 22% year-to-date. FINX offers long-term potential due to several ...
NEW YORK , Feb. 12, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of seventeen additional ETFs to Schwab ETF OneSource, ...
Fintech, which is short for "financial technology," has been a booming category during the past few years. Some of the drivers include smartphones, cloud computing, blockchain and artificial intelligence. Many fintechs are still private, like Stripe, Betterment, Ellevest and Robinhood. According to a report from KPMG, VCs (venture capitalists) invested $14.2 billion across 427 companies during the first half of 2018. In fact, we'll probably see some of them hit the IPO market this year. But there are still plenty of fintech companies that are publicly traded. Keep in mind that old-line operators, such as Mastercard (NYSE:MA) and Visa (NYSE:V), are considered part of this class. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 F-Rated Stocks That Could Break Your Portfolio With that in mind, here are five of the best fintech stocks to invest in now. ### Source: Shutterstock ### PayPal (PYPL) A key Silicon strategy is to disrupt massive industries. While this can result in enormous profits, it is extremely tough to pull off. There are some industries that are quite resilient, such as financial services. In light of this, PayPal (NASDAQ:PYPL) has taken a collaborative approach. Part of this has been about integrating many types of payment options, which is what customers prefer. But there has also been an aggressive focus on forming strategic alliances. A prime example is a deal with Walmart (NYSE:WMT) to get a piece of the unbanked market segment. For the most part, PYPL's strategy has worked extremely well. In the latest quarter, the net new active accounts increased by 9.1 million to 254 million and the transaction volume jumped by 27% to 2.5 billion. A major driver for engagement has been from mobile devices. Another strong catalyst for PYPL stock is Venmo, which provides peer-to-peer payments services. Note that the app is a must-have for the Millennial generation. From 2016 to 2018, the total payment volume has gone from 3.2 billion to 16.6 billion. While still early, PYPL is seeing lots of traction with monetization, with 24% of the user base participating. In fact, Venmo is likely to be a strong lever of growth in the coming years. Finally, PYPL has a rock solid balance sheet. There is currently about $10.5 billion in liquid assets. In other words, the company has the resources to engage in aggressive M&A to further bolster its strong fintech platform. ### Source: Mike Mozart via Wikimedia (Modified) ### Intuit (INTU) Founded in 1983, Intuit (NASDAQ:INTU) is a pioneer among fintech stocks. The company started off with simple check-balancing methods. But since then, INTU has expanded into lucrative categories like small business accounting and personal/business taxes. These segments certainly generate substantial amounts of data, which allows for interesting use-cases. One example is QuickBooks Capital. It is a lending service that uses Intuit's accounting data to make loans. Because of Intuit's data advantage, about 60% of customers have obtained approvals for loans that would generally be deemed "un-lendable" by traditional financial institutions. The loss rate is also less than half the industry average. It's also important to note that INTU is bolstering its market opportunity by moving beyond its small business focus. Just look at QuickBooks Online Advanced. This is for the mid-market category (where the employee base ranges from 10 to 100). The market size in the U.S. is about 1.5 million. * 10 Cold Weather Stocks to Heat Up Your Returns In light of the innovation and diversified business assets, it should be no surprise that INTU has been a consistent grower. From 2010 to 2018, revenues have more than doubled to $6 billion. ### Source: Shutterstock ### Envestnet (ENV) Envestnet (NYSE:ENV) develops sophisticated cloud-based technologies for financial advisors, such as independent providers and small- or mid-size firms. EVN's software provides a full suite of services for front, middle and back office needs. The company has built a solid base, with about 93,000 advisors (up 5% in the latest quarter). There are over $2.8 trillion in assets and more than 10 million investor accounts on the system. One of the attractions of ENV is its open architecture. For the most part, the company strives to provide as many options for its advisors as possible. Note that there are over 18,000 products and more than 20,000 data sources. ENV is also poised to benefit from a secular trend in the financial services industry, as more advisors transition from commissions to fee-based compensation. According to Cerulli, the amounts are expected to go from $9.7 trillion in 2017 to $16.7 trillion in 2021. ### Source: Lending Tree ### LendingTree (TREE) LendingTree (NASDAQ:TREE) operates an online marketplace for consumers to purchase financial services. The company has over 500 partners in its network, covering areas like mortgages, insurance, personal loans and credit cards. There is also a plethora of content and tools, such as for getting free credit scores. A critical part of building this platform has been aggressive M&A, such as for ValuePenguin, QuoteWizard, Student Loan Hero and Valore (since 2016, there have been a total of $680 million in transactions). These deals have not only provided top-notch technology but footholds in key growth markets. The result is that the revenue base has become much more diversified. During the past five years, the mortgage concentration has gone from 80% to only 20%. No doubt, this has been important as the mortgage business has come under pressure during the past year or so. * 10 Cold Weather Stocks to Heat Up Your Returns Going forward, the growth story looks to be intact. For this year, the company projects revenues to increase by 29% to 34% or from $990 million to $1.03 billion and adjusted EBITDA to range from $195 million to $205 million. Then again, TREE continues to benefit from major secular trends as financial institutions allocate more resources to digital platforms. ### Source: Investment Zen via Flickr (Modified) ### Global X FinTech ETF (FINX) If you do not want to pick individual fintech stocks to invest in, then you can invest in an exchange-traded fund (ETF) that tracks the fintech markets. And a good choice is the Global X FinTech ETF (NASDAQ:FINX), which has about $288 million in assets. The fund includes 37 stocks that have an average market cap of $9.4 billion. The top five holdings include PYPL, Square (NYSE:SQ), Fiserv (NASDAQ:FISV), SS&C Technologies Holdings (NASDAQ:SSNC) and Fidelity National Information Services (NYSE:FIS). What's more, about 30% of the portfolio companies are based outside the U.S. In terms of the themes for the FINX ETF, they are fairly broad. They are P2P/marketplace lending, enterprise solutions, blockchain/cryptocurrencies, crowdfunding and personal finance software/automated wealth management. The fund has an expense ratio of 0.68% and no dividend yield. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 S&P 500 Stocks to Buy That Tore Up Earnings * 10 Cold Weather Stocks to Heat Up Your Returns * The 7 Best Penny Stocks to Buy Compare Brokers The post 5 Fintech Stocks to Buy As This Mega Trend Gains Steam appeared first on InvestorPlace.
The fintech space is booming , but to date, just one exchange traded fund has been dedicated to that theme. That changed Monday with the debut of the ARK Fintech Innovation ETF (NYSE:ARKF). ARKF is the ...
eBay is cashing in on its structured data and artificial intelligence strength while PayPal is focusing on inorganic growth via several partnerships. Are ETFs better options to play the stocks?
Established in 2016, the Global X Fintech Thematic ETF (NYSE: FINX) seeks to invest in companies on the leading edge of fintech, including insurance, investing, payments, and peer-to-peer lending. The fund currently has $271 million assets under management, making it the largest pure-fintech ETF play.