There is abundant growth happening within the fintech industry, unlocking a lucrative opportunity for investors.
Shares of Bill.com, weighted 3.22% in the ARK Fintech Innovation ETF (ARKF), traded up around 16% last Friday after the company reported fourth-quarter earnings that beat Wall Street estimates, ARK Invest wrote in a recent commentary.
Revenue growth for Bill.com increased 156% year-over-year and management increased guidance for the third quarter. Adding 11,200 net new customers in the quarter, Bill.com continues to win market share across the small business digital payments (SMB) fintech space. Bill.com provides finance-related software services for small and midsize businesses, according to ARK.
Like other disruptive technologies, fintech intersects with other innovative segments, including artificial intelligence/automation and blockchain. ARKF invests in U.S. and global companies deemed to be engaged in the theme of fintech innovation, defined as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works. This includes transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer-facing platforms, and new intermediaries, according to the fund’s website.
Companies within ARKF are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure, and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media, according to the fund’s website.
The fund holds 32 securities as of August 19, according to ARK Invest’s website.
The top ten holdings in ARKF as of July 15 include Block Inc (SQ, 9.97%), Shopify Inc – Class A (SHOP, 9.59%), Coinbase Global Inc – Class A (COIN, 7.85%), Twilio Inc – A (TWLO, 6.47%), UIPATH Inc – Class A (PATH, 6.14%), Mercadolibre Inc (MELI, 5.77%), DraftKings Inc (DKNG UW, 4.97%), Robinhood Markets Inc – A (HOOD, 4.95%), Discovery Ltd (DSY, 4.39%), and Adyen NV (ADYEN, 4.30%), according to the fund’s website.
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