The 4 Best Tech Stocks In 2021 Are Pioneers Of The New Economy

Earlier this year, PayPal's CEO said on its earnings call, "I believe we will look back at this time as a tipping point, where digital payments both offline and online become an essential element of our lives."

This statement has never rung truer.

Many parts of our lives have changed over the last year, including the places we go, the people we see, how we travel, and how we pay for it all. I've hardly touched a single dollar bill this year, and I can imagine you have a similar experience with cash. Instead, I've relied exclusively on electronic payment systems through my credit card or phone, using technologies life NFC to pay at the grocery store or local coffee shop.

In fact, much like many of you, I'm doing most of my shopping online these days. This has helped online merchants such as Amazon and Shopify to thrive.

This dramatic shift away from cash has created a huge opportunity for companies like Visa, PayPal, and Square that power our contactless society.

But an even bigger opportunity comes from the ARK Fintech Innovations ETF (NYSEArca: ARKF).

ARK's Fintech Innovations ETF not only holds great growing payment companies like PayPal and Square, but it also holds companies that are benefiting from the shift to digital payments. This ETF believes in six major business platforms: transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer-facing platforms, and new intermediaries.

This is exactly what it is doing. Its largest position is payment leader Square Inc. (NYSE: SQ), and it also invests in companies that are at the forefront of e-commerce including Mercadolibre Inc. (NASDAQ: MELI) and Sea Ltd. (NYSE: SE), in South American and Southeast Asia.

What I really like about this fund is that it is actively managed. This means that if ARK finds better investments, it can add them in. Up 75% this year, there is still plenty of room to run given some of its high-growth tech holdings looking to capture large addressable markets.

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Disclosure: None.

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