“The payments (including money transfer) segment is a key area within the broader FinTech universe that is benefiting from these trends. We expect a favorable economic backdrop, the continued shift to digital payments, increased e-commerce penetration and strong fundamentals for many firms in FinTech to support credit fundamentals in the coming years,” according to Fitch.
The $311.6 million FINX “encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions,” according to Global X.
“Robust cash generation, healthy balance sheets and the still relatively low cost of debt are supporting M&A activity. Buybacks also remain a primary use of capital for companies, particularly larger issuers such as Visa and Mastercard that are flush with cash. We expect FCF trends to remain strong across the industry, supported by healthy fundamentals, low capital intensity, limited working capital requirements and benefits from US tax reform,” according to Fitch.
FINX charges 0.68% per year, or $68 on a $10,000 investment.
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