Global X FinTech ETF (FINX)

Financial technology, or fintech, was one of the worst performing parts of the stock market in the 2022 bear market and for the roughly two-year period that followed. During the COVID-19 pandemic, the economy turned to online payments, cashless money transfers, and cryptocurrency interest surged.

FINX is a strong buy, offering a cost-effective, diversified way to capture fintech growth, with superior returns vs. passive peers. The fund is strategically positioned to benefit from digital payments, AI, and embedded finance trends, with key holdings in PayPal, Adyen, and Intuit. Despite risks like portfolio concentration and liquidity, The Global X FinTech ETF's international and sector diversification enhances resilience and growth potential.

Financial technology (fintech), broadly speaking, allows the remote delivery of financial services to businesses and individuals through computers or mobile devices. Fintech encompasses everything from smartphone apps to complex blockchain-enabled networks that facilitate financial transactions.

It's been a rough few weeks for the S&P 500 as well as other major American economic indicators. The S&P 500 hit its lowest level in four months on Tuesday, erasing its election gains.

Global X FinTech ETF has a high expense ratio of 0.68%, barely covered by its dividend yield of 0.70%. ARKF, although more liquid, does not fully represent the fintech segment. FINX is less performant but more characteristic of the sector. Deregulation and fiscal stimulus have historically been strong catalysts for significant stock market growth in the fintech segment.

The holiday shopping season in recent years kicked off with a five-day weekend that began on Thanksgiving and wrapped up on Cyber Monday. According to the National Retail Federation, roughly 197 million shoppers participated in the retail frenzy this year.

The Global X FinTech ETF is on my watch list due to its high return/moderate risk potential once the market stabilizes. FINX invests in fintech stocks, encompassing mobile payments, lending, financial software, and IT, poised to benefit from digital adoption and embedded finance growth. Despite high growth potential, with global fintech revenues forecasted to grow sixfold by 2030, valuation concerns and market timing lead me to a hold rating.

As food prices continue to soar in the United States, more Americans are resorting to Buy Now, Pay Later (BNPL) options.

European Central Bank President, speaking at a Bloomberg panel during the World Economic Forum in Davos, expressed that a return to economic "normality" in 2024 remains unlikely.

The holiday season saw a robust start, with Americans spending considerably this year. The NRF expects retail sales to rise 3-4% year over year to $957.3-$966.6 billion during the full November-December holiday season.

Global X FinTech ETF is an ETF that tracks the performance of companies in the fintech sector. The ETF holds a maximum of 100 fintech companies, including Intuit, Fiserv, Coinbase, Fidelity National Information Services, and Adyen. FINX has underperformed compared to other fintech ETFs and the broader technology market, but may still be an interesting opportunity for long-term passive investors.

Investing areas like small-caps, technology, fintech, real estate and emerging markets gained materially on softer U.S. jobs data as it strengthened chances of a dovish Fed, going forward.

Despite decreasing personal income and savings rates, Americans' personal expenditure saw a sequential increase in September. Holiday season sales forecast is also upbeat.

PayPal beats on earnings and revenues in the third-quarter reporting season. The company also boosted outlook.

There have been improvements in the spending pattern of middle class. Though enduring deficit in spending power is concerning, the release of such data prior to the holiday season is a good news for retailers.