If Bitcoin’s rise to $50,000 is the tide that lifts all boats, then certain ETFs can also stand to benefit. One ETF to consider is a promising fintech play in the Global X FinTech ETF (FINX).
Social distancing measures have only increased the use of digital payments via fintech. By integrating cryptocurrency into fintech platforms, both spaces could benefit over the long run.
“The fund seeks to invest in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovation helping to transform established industries, like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions,” a Zacks article explained. “It has AUM of $1.16 billion and charges 68 bps in fees.”
FINX seeks to provide investment results that correspond to the Indxx Global Fintech Thematic Index. The 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.
The fund 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 the delivery of financial services.
- An Unconstrained Approach: The fund’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, FINX offers access to dozens of companies with high exposure to the fintech theme.
- Strong Performance: FINX is up almost 60% within the past year.
Institutional Money Is Loving Crypto
Big players are starting to flood the cryptocurrency space. Institutional investors, hedge funds, and even electric automaker Tesla are getting in on the Bitcoin action.
“The digital currency has already surged more than 60% so far in 2021 and is up more than 1,100% since March 2020,” the Zacks article noted further. “According to Chris Weston, head of research at Melbourne brokerage Pepperstone, ‘there’s this unadulterated wave of big players (buying) that has continued to push the price higher’.”
For more news and information, visit the Thematic Investing Channel.