48.85 +0.02 (0.04%)
After hours: 4:00PM EDT
|Bid||47.40 x 900|
|Ask||49.50 x 1200|
|Day's Range||48.38 - 48.86|
|52 Week Range||32.40 - 48.88|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.12|
|Expense Ratio (net)||0.75%|
About 58% asset owners have opted for smart beta products in 2019, an all-time high, per FTSE Russell. Let???s see which smart-beta ETFs have stood victorious in the latest round of trade turmoil.
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.
Payments processor Visa (NYSE:V) has been a gift that keeps on giving for investors who've held on to their shares. V stock is up roughly 21% so far this year and many believe the firm can keep going. The S&P 500 index is up 13.4% in the same period.Source: Shutterstock However, with a price-earnings ratio of 33.1 and a dividend yield that's below 1%, Visa stock is also an expensive buy. While the V stock price is up there, the company has a lot of room to keep on growing and that make the shares a solid addition to long-term investors' portfolios. Payments Processing GoldmineOne of the biggest reasons investors consider Visa stock at all is the fact that the firm is the largest payments processor in the world, as measured by the number of branded cards issued. That's a big deal because the industry itself has a huge growth runway, so owning the largest beneficiary of that trend has its perks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dangerous Dividend Stocks to Stay Far Away From People are abandoning cash and opting instead for credit/debit cards and digital payments. Back in 2016 we saw the number of non-cash purchases overtake cash for the first time, and since then the gap has only gotten wider. Visa has been on the receiving end of a great deal of that growth. In 2018, Visa processed 124 billion transactions on its network -- a step up from the 111 billion it facilitated in 2017.Those rising transaction figures are the reason Visa has been able to consistently produce double-digit growth over the past few years, a trend that most expect to continue throughout the medium term. Growth AheadWith the largest number of outstanding cards, Visa has a lot of power over the fees it can charge merchants and it's used that power to grow its margins. As one of the most widely accepted credit cards, Visa appeals to customers and that in turn makes merchants more willing to pay a premium to accept Visa payments.It's also important to recognize that Visa stock isn't just a credit card play anymore, either. V has also started branching out into the digital payments space with Visa Checkout, and the firm has also took a position in Square (NYSE:SQ), a smaller payments processor with a firm foothold in next-generation payment methods. Times They Are a' ChangingSome argue that Visa's dominance in the payments processing space is actually a negative. The firm's near duopoly with Mastercard (NYSE:MA) in the credit card space could make it a target for regulatory action, especially as cash payments continue to dwindle and it becomes more and more necessary to have a credit card on-hand. Plus, there's further to fall when you're already at the top. Investors aren't wrong in saying that Visa stock has high expectations to live up to. We saw that materialize in the second quarter when V announced its earnings results. Despite the fact that Visa beat earnings expectations and met revenue predictions, the stock declined as investors digested the news. For those investors who like the payments sector but looking for broader exposure than just one name, the ETFMG Prime Mobile Payments ETF (NYSEArca:IPAY) might be the way to play it, with V stock, MA and SQ among the top holdings in its 40-stock portfolio. Visa Stock's Worth The PriceSure, there are risks when it comes to buying Visa stock. If you're a value investor, it can be worrisome to invest in a stock that's trading near all-time highs. However, it's important to note that Visa is almost always trading near all-time highs because the firm delivers solid growth more often than not. * 7 Cloud Stocks to Buy on Overcast Days The buy case for Visa stock is a simple one: the firm has a commanding market share in an extremely scalable business. The growth opportunity is there and Visa doesn't have to work hard to get it. While some of its peers like American Express (NYSE:AXP) are considerably cheaper -- at a P/E of 14.9 -- Visa offers a level of stability and security that others can't simply because of its size and reach.As long as you believe that non-cash transactions will continue gaining momentum, V stock will be a worthwhile consideration. Don't let the company's price-tag scare you, it almost never trades at a huge discount. Visa is the kind of stock you buy and hold on to for years, so its worth a look for long-term investors. As of this writing Laura Hoy did not hold a position in any or the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 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 Is Visa Stock Too Expensive at $160 Or Is There Even More Upside Here? appeared first on InvestorPlace.
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.
In the conversations about disruptive technologies and thematic investing, mobile payments has earned its place. The $399 million IPAY follows the Prime Mobile Payments Index and is nearly four years old. The first ETF dedicated to the mobile payments industry, IPAY “capitalizes on the transition taking place from cash/physical credit card payments to a mobile/digital system,” according to its issuer.
With exchange-traded funds (ETFs) garnering over $300 billion in assets in 2018 despite a volatile end to the year, it's clear that there's an appetite for the ETF as an investment vehicle that's expected to continue in 2019 and beyond. ETF Trends Publisher Tom Lydon joined CNBC's Bob Pisani on the new "ETF Edge" show on Monday to discuss opportunities in banking ETFs, disruptive technology, niche ETFs, and a model ETF portfolio to beat the market. Should Investors Deposit into Banking ETFs? Citigroup kicked off earnings season with banks like Wells Fargo, Bank of America and JP Morgan Chase scheduled to report later this week for the financial sector, but market mavens are mixed on what to expect, warranting caution for investors.
Mastercard (MA) stock rose ~3% in premarket trading on October 30 following its announcement of its impressive third-quarter results.
The decreased cost of digital payment acceptance is another factor that has led to its rapid adoption, fueling Visa’s growth. A massive increase in digital transactions along with the company’s strategy of investing in technology has paid off well in the form of increased processed transactions and payment volumes. Visa’s total payment volumes grew to $8.22 trillion in fiscal 2018 from $3.94 trillion in fiscal 2012, signifying a CAGR (compound annual growth rate) of 13%.
Visa’s (V) fourth-quarter fiscal 2018 revenues of $5.43 billion were almost in line with the Wall Street analyst estimate of $5.44 billion. On a YoY basis, quarterly revenues grew 12% mainly driven by double-digit growth in payment volume, cross-border volume, and transactions processed. However, unfavorable currency exchange rates had a negative impact of 0.5% on the company’s top-line performance.
Yesterday Visa (V) reported a stellar financial performance for the fourth quarter of 2018. The payment processing company’s adjusted EPS jumped 34% year-over-year to $1.21 and surpassed Wall Street analysts’ estimates by a penny.
Some tech-heavy U.S. fund managers have turned to the once-stodgy payments sector as an alternative to so-called FANG stocks as high-flyers like Facebook Inc (FB.O) and Google parent Alphabet Inc (GOOGL.O) falter. Companies underpinning online shopping and mobile payments, such as Visa Inc (V.N), Mastercard Inc (MA.N) and PayPal Holdings Inc (PYPL.O), offer above-average growth at a more reasonable valuation than FANGs and held onto more gains during recent market volatility, fund managers said.
Analysts expect Mastercard’s (MA) third-quarter 2018 revenues to grow 13.7% YoY and reach $3.86 billion. Analysts believe higher switched transactions, increased cross-border and gross dollar volumes, and gains from acquisitions will boost the company’s top-line results.
Mastercard (MA) is scheduled to report its third-quarter 2018 results on October 30. Analysts project a substantial YoY (year-over-year) increase in the company’s top-line and bottom-line results. Its improved expectations are primarily driven by the strong economy, higher payments volume, and elevated spending. The improvement could be partially offset by a strong dollar and ongoing trade war concerns.
At current market prices, Visa (V) trades at a premium valuation to most of its peers (IPAY), with the exception of Mastercard (MA) and PayPal (PYPL).
On October 24, Visa (V) is scheduled to report its earnings for the fourth quarter of fiscal 2018, which ended on September 30. Analysts project a substantial YoY (year-over-year) increase in the company’s top-line and bottom-line results.
The PE (price-to-earnings) ratio is considered the best multiple to value financial technology companies like Mastercard (MA). At current market prices, the stock trades at a premium valuation to most of its peers, with the exception of PayPal Holdings (PYPL).
Mastercard Near Its 52-Week High: Is Upside Potential Still Left? Over the last year, Mastercard (MA) has focused on a more lucrative and larger payment opportunity—business-to-business (or B2B) payments. The company’s CFO, Martina Hund-Mejean, believes that the financial industry has mostly neglected the B2B payment space.
Mastercard (MA) has registered double-digit revenue growth for the last six consecutive quarters. Its revenues for fiscal 2016 and 2017 also grew in double digits.
The price-to-earnings (or PE) ratio is considered to be the best multiple to value financial technology companies like Visa (V). At current market prices, the stock trades at a premium valuation to most of its peers except Mastercard (MA) and PayPal (PYPL).
Visa (V) is making efforts to stay ahead in the payment industry, which is experiencing tremendous growth. The sector is witnessing a rapid shift in the mode of payments. It is anticipated that with continuously evolving technology and increasing mobile and Internet penetration, the industry will see further changes in payment modes.