Double Down on the Fintech Industry With This ETF

Whether inflation is high or low, technology is constantly on an upswing. That can be said for all business sectors, including the banking industry where technology is improving the way consumers and businesses process financial transactions.

“The digital revolution has changed the world in just the last decade and a half, spawning new technologies, new ways of using technologies, and bringing old businesses into the 21st century,” a Yahoo! Finance article said. “Nowhere is this more obvious than in the financial sector. Banking and financial services have benefited enormously from bringing tech into the mix – and their gains have given us a new word to describe it, fintech.”

Despite faltering recently, the fintech industry has seen strong growth over the last five years as indicated by the BlueStar Fintech Index, which is up almost 50%. The market swings in the industry also open up opportunities for short-term traders looking to play the daily moves.

^BF Chart

^BF data by YCharts

Trading the Fintech Industry in One ETF

Rather than trade multiple stocks that are representative of the fintech industry, traders can get amplified exposure using just one fund: the Direxion Daily FinTech Bull 2X Shares (FNTC). The funds seek to achieve 200% of the daily performance of the Indxx US Fintech and Decentralized Finance Index, the MVIS US Listed Oil Services 25 Index, and the S&P 500 Equal Weight Index, respectively.

FNTC follows the Indxx US Fintech and Decentralized Finance Index, which includes companies offering technology-driven financial services and facilitating a decentralized finance infrastructure, that are disrupting existing business models in the financial services industry in the U.S.

The following sub-themes are included in FNTC: digital payments, point-of-sale, personal finance software, and credit/debit card issuers, tax compliance software and backend payment processing, decentralized finance, financial enterprise solutions, and peer-to-peer lending and crowdfunding. Companies involved in business activities associated with these sub-themes will be eligible for inclusion. Eligible companies deriving a minimum of 50% of their total revenue from these sub-themes will form the selection list.

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