The financial industry is evolving as companies do more business online. If you’re looking for an exchange-traded fund (ETF) that can help you profit from that potential, then you should consider the Global X Fintech ETF (NASDAQ:FINX). It invests in companies that are transforming industries such as insurance and third-party lending.
Some of the top holdings in the Global X Fintech ETF include Block (NYSE:SQ), PayPal Holdings (NASDAQ:PYPL), and Coinbase Global (NASDAQ:COIN). These are companies that are involved in digital payments and that have benefitted from the growth in e-commerce. And there’s still tremendous growth out there; estimates from Grand View Research project that by 2030, the global digital payment market will be worth $361 billion, growing at a compounded annual growth rate of 20.8% until then. It’s an exciting industry to invest in and this ETF can help investors tap into those opportunities.
There are a total of 66 holdings in the fund, which means there isn’t a whole lot of diversification, with several stocks accounting for more than 4% of the fund’s weight. However, as the industry grows and more businesses become involved with digital payments, that could change. The vast majority of the stocks within the fund are in information technology (81%), and so there could be some volatility due to the riskiness of the tech sector these days. But in the long haul, this ETF may pay off significantly for investors.
Year to date, the fund is up 11%, making up some ground after losing 52% in value in 2022.