After a heavy dose of losses amid the coronavirus outbreak, the major stock market indexes finally soaked in some green as the Dow Jones Industrial Average bounced back in Monday’s trading session. However, this was much to the chagrin of free trading platform Robinhood, which experienced an outage possibly due to high trading volumes as investors dove back into the markets.
“We are experiencing a system-wide outage. We are working to resolve this issue as soon as possible,” the company said in a message to clients Monday.
Furthermore, Robinhood took to Twitter to try and ameliorate the confusion.
“Our system is experiencing downtime issues that are affecting all functionalities on our platform. We are aware of the issue and are working to have all systems up and running as soon as we can. We’re so sorry this is happening!,” the tweet said.
Per a Forbes report, “The outage at Robinhood couldn’t come at a worse time for the fintech. Stocks are rebounding after last week’s plummet due to coronavirus fears. All of the major stock indexes ended last week in correction territory. On Monday the markets were clawing their way back with the Dow Jones Industrial Average recently up 706 points. Customers of Robinhood, however, couldn’t take part in the rally.”
Fintech ETFs to Consider
Robinhood is deemed as one of the leading purveyors in financial technology (fintech) where payments are increasingly going digital with a number of start-ups seeing venture capital seed money to help facilitate online purchases. According to the research company Pitchbook, data shows that investors put $18.5 billion into the payment processing sector in 2018–an increase of five times the previous year.
ETFs to look at in the growing fintech space include the Global X FinTech ETF (NasdaqGM: FINX) and the ARK Fintech Innovation ETF (NYSEArca: ARKF). ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.
FINX seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Fintech Thematic Index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software and alternative currencies, as defined by the index provider.
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