The Global X FinTech ETF (FINX) is up over 50% this year.
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.
FINX gives investors exposure to:
- High Growth Potential: FINX enables investors to access high growth potential through companies that are applying technological innovations to disrupt and improve delivery of financial services.
- An Unconstrained Approach: FINX’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, FINX delivers access to dozens of companies with high exposure to the FinTech theme.
Technically, a chance to purchase could be in the works as FINX starts to drop below its overbought levels based on its relative strength index (RSI). A moving average convergence divergence (MACD) filter shows the exponential moving average could be heading below the signal line, which could trigger buying opportunities ahead.
Digital Payments Market Grows 23.7% in 2020
Research data analyzed and published by Finnish website Sijoitusrahastot shows that “the global digital payments market grew by 21% YoY in transaction value during H1 2020. Statista projects that the market’s total transaction value will grow by 23.7% year-over-year (YoY) in 2020 to reach $4.93 trillion. The number of users is also set to increase by 10.1% YoY to reach 3.47 billion.”
The digital payments market, in particular, is expected to reach $2.88 trillion by the year 2020.
“In the period between 2020 and 2024, the global digital payments will grow at a 13.4% compound annual growth rate (CAGR) to reach $8.17 trillion by 2024,” the site noted. “The market’s top segment is digital commerce, estimated to grow at 4.8% YoY reach $2.93 trillion in 2020. By 2024, it is set to grow to $4.11 trillion, growing at a CAGR of 8.9%.”
“China will take the lead in digital payments, growing to $2.31 trillion, as well as in digital commerce, reaching $1.17 trillion in 2020,” the website added. “For Asia as a whole, digital payments will reach $2.88 trillion in 2020 as per a Statista report.”
For more news and information, visit the Thematic Investing Channel.