We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the ETFMG Prime Mobile Payments ETF (IPAY)?
Read MoreHide Full Article
Launched on 07/16/2015, the ETFMG Prime Mobile Payments ETF (IPAY - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the U.S. equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Etf Managers. It has amassed assets over $316.31 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the U.S. equity market. IPAY seeks to match the performance of the Prime Mobile Payments Index before fees and expenses.
The Prime Mobile Payments Index provides a benchmark for investors interested in tracking the mobile and electronic payments industry, specifically focusing on credit card networks, payment infrastructure and software services, payment processing services, and payment solutions.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.75%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.02%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Visa Inc (V - Free Report) accounts for about 6.28% of total assets, followed by Mastercard Incorporated (MA - Free Report) and American Express Co (AXP - Free Report) .
The top 10 holdings account for about 49.61% of total assets under management.
Performance and Risk
The ETF has gained about 9.23% and it's up approximately 32.54% so far this year and in the past one year (as of 05/10/2018), respectively. IPAY has traded between $28.43 and $38.52 during this last 52-week period.
The ETF has a beta of 1.27 and standard deviation of 16.24% for the trailing three-year period, making it a medium risk choice in the space. With about 38 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the ETFMG Prime Mobile Payments ETF (IPAY)?
Launched on 07/16/2015, the ETFMG Prime Mobile Payments ETF (IPAY - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the U.S. equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Etf Managers. It has amassed assets over $316.31 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the U.S. equity market. IPAY seeks to match the performance of the Prime Mobile Payments Index before fees and expenses.
The Prime Mobile Payments Index provides a benchmark for investors interested in tracking the mobile and electronic payments industry, specifically focusing on credit card networks, payment infrastructure and software services, payment processing services, and payment solutions.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.75%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.02%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Visa Inc (V - Free Report) accounts for about 6.28% of total assets, followed by Mastercard Incorporated (MA - Free Report) and American Express Co (AXP - Free Report) .
The top 10 holdings account for about 49.61% of total assets under management.
Performance and Risk
The ETF has gained about 9.23% and it's up approximately 32.54% so far this year and in the past one year (as of 05/10/2018), respectively. IPAY has traded between $28.43 and $38.52 during this last 52-week period.
The ETF has a beta of 1.27 and standard deviation of 16.24% for the trailing three-year period, making it a medium risk choice in the space. With about 38 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.