4 Top Fintech ETFs To Buy Now

: ARKF | ARK Fintech Innovation ETF News, Ratings, and Charts

The fintech (financial technology) industry is transforming the US financial sector as we are witnessing a digital payment revolution. It’s not surprising that fintech stocks have been among the biggest outperformers of the year. The e-commerce boom and digitization of major service industries have triggered the rapid adoption of remote financial transactions.

The move to contactless payments is not going to abate when the virus is defeated. A study by Ark Investment Management shows that fintech adoption could increase exponentially. The firm estimates digital wallet users in the United States to reach 227 million, at a 27% CAGR, by 2024. However, betting on individual fintech stocks could be risky at this moment. ETFs could help you mitigate this risk as they hold a broad and diversified exposure at minimal operating costs.

The ARK Fintech Innovation ETF (ARKF - Get Rating), ETFMG Prime Mobile Payments ETF (IPAY - Get Rating), Tortoise Digital Payments Infrastructure Fund (TPAY - Get Rating), and Global X FinTech ETF (FINX - Get Rating) are currently the best ETFs to invest in the fintech space.

ARK Fintech Innovation ETF (ARKF - Get Rating)

ARKF is an actively-managed ETF that follows thematic multi-cap exposure to fintech innovations including mobile payments, digital wallets, peer-to-peer lending, blockchain technology, and risk transformation. The ETF defines “fintech innovation” as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works. ARKF is a relatively new fund that commenced its operations in February 2019. Although the fund does have international exposure, 67% of its holdings are in the United States. It has $1.06 billion in AUM, with an expense ratio of 0.75%. The ETF has an MSCI ESG Fund Rating of BBB based on a score of 5.57 out of 10.

The fund currently holds 47 companies, with the Software & Information Technology sector naturally leading the way, with a 50.1% weighting. The ETF also has exposure to the Communication Services sector (14.4%) and the Financials sector (11.2%), respectively. The top 3 holdings of the fund are Square, Inc. (SQ), Pinterest, Inc. (PINS), and MercadoLibre, Inc. (MELI), with weights of 10.2%, 4.5%, and 4.3%, respectively.

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