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Should You Invest in the Global X FinTech ETF (FINX)?
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If you're interested in broad exposure to the Technology - Broad segment of the U.S. equity market, look no further than the Global X FinTech ETF (FINX - Free Report) , a passively managed exchange traded fund launched on 09/12/2016.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many 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 5, placing it in top 31%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $267.95 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. FINX seeks to match the performance of the Indxx Global FinTech Thematic Index before fees and expenses.
The Indxx Global FinTech Thematic Index invests in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital 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 0.68%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.09%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Wirecard Ag accounts for about 10.87% of total assets, followed by Square Inc - An and Temenos Group Ag-Reg.
The top 10 holdings account for about 65.78% of total assets under management.
Performance and Risk
The ETF has added roughly 22.69% so far this year and is up about 42.48% in the last one year (as of 07/12/2018). In that past 52-week period, it has traded between $19.18 and $27.29.
The ETF has a beta of 1.05 and standard deviation of 14.10% for the trailing three-year period. With about 32 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.
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Should You Invest in the Global X FinTech ETF (FINX)?
If you're interested in broad exposure to the Technology - Broad segment of the U.S. equity market, look no further than the Global X FinTech ETF (FINX - Free Report) , a passively managed exchange traded fund launched on 09/12/2016.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many 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 5, placing it in top 31%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $267.95 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. FINX seeks to match the performance of the Indxx Global FinTech Thematic Index before fees and expenses.
The Indxx Global FinTech Thematic Index invests in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital 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 0.68%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.09%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Wirecard Ag accounts for about 10.87% of total assets, followed by Square Inc - An and Temenos Group Ag-Reg.
The top 10 holdings account for about 65.78% of total assets under management.
Performance and Risk
The ETF has added roughly 22.69% so far this year and is up about 42.48% in the last one year (as of 07/12/2018). In that past 52-week period, it has traded between $19.18 and $27.29.
The ETF has a beta of 1.05 and standard deviation of 14.10% for the trailing three-year period. With about 32 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.