Group 1: Fintech Market Overview - Fintech was one of the worst performing sectors during the 2022 bear market and the subsequent two years, struggling due to rising interest rates and inflation after the pandemic [1] - A resurgence of fintech stocks is observed in 2025, with companies like SoFi and PayPal showing growth in membership and user base respectively [2] Group 2: Investment Opportunities in Fintech - There are significant opportunities in the fintech sector, but it is characterized by volatility, prompting investors to consider ETFs for exposure [3] - The Global X Fintech ETF (FINX) has delivered 10.6% annualized returns since its inception in 2016, with a 0.68% expense ratio [5] - The top holdings in the Global X Fintech ETF include Coinbase (9.76%), Intuit (6.36%), and PayPal (5.55%) [5] Group 3: Active vs Passive Management in ETFs - The Ark Fintech Innovation ETF (ARKF) is actively managed with over $1.2 billion in assets, aiming to outperform a benchmark [8] - This ETF has a broader definition of fintech stocks, investing about 5% in Bitcoin and including non-traditional fintech companies like Shopify and Roblox [9] - Since its inception in early 2019, the Ark ETF has delivered nearly 16% annualized returns with a 0.75% expense ratio [9] Group 4: Investment Strategy Considerations - Both the Global X and Ark ETFs provide solid investment options in fintech without the need to pick individual stocks, but they cater to different investment strategies [10] - The Global X fund is suitable for broad fintech exposure, while the Ark ETF may appeal to those seeking smaller, high-potential companies despite higher volatility [10]
2 Fintech ETFs to Buy With $2,000 and Hold Forever
The Motley Foolยท2025-07-25 09:41