Source has launched Europe's first UCITS fund focused exclusively on financial technology (“FinTech”) companies. FinTech has experienced exponential growth, although it has not been easy until now to obtain broad exposure to this sector.
The Source KBW NASDAQ Fintech UCITS ETF aims to track the KBW NASDAQ Financial Technology Index, which comprises US listed FinTech companies. The index currently consists of 50 stocks and includes companies such as Paypal and Visa, or such as Square, a new app that allows you to make payments at points of sale directly from your smartphone. Therefore, it may include companies with a market capitalization ranging from less than 1 billion to more than 150 billion US dollars. The weighting of each company is calculated to contribute equally, so that performance is not only driven by the largest companies.
“FinTech companies are redefining every facet of the financial services industry, from online finance and payments to insurance and data processing,” commented Chris Mellor, executive director, equity product management, Source. after the financial crisis, when traditional financial services came under severe pressure just as consumer behavior was changing and technologies such as smartphones, cloud computing and big data were starting to take hold. Faster, more efficient and more integrated technology in the financial sector has supported the very strong growth of FinTech companies and this trend shows no signs of slowing down.
