Exchange-traded fund (ETF) manager ETF Securities has released a new product to the market providing individuals with the opportunity to invest in fintech and blockchain companies.
Launched on the Chi-X securities exchange today, the ETFS Fintech & Blockchain ETF is made up of a portfolio of 75 stocks providing exposure to sub-themes in the fintech industry.
The offering’s key theme is decentralised finance using blockchain technology and to this end 20 of the 75 shares the portfolio invests in will be from companies involved in this type of activity.
More specifically, some of the common fintech themes on which the ETF will be focusing include digital payments and point of sale, crowdfunding and peer-to-peer lending, financial data provider and analysing, payments processing, finance and tax software, and trading and capital markets.
Portfolio allocations currently include companies such as Visa, PayPal, Square and Xero.
“This is an exciting growth period for the ETF sector in Australia as investors look for varied exposures to investment megatrends, led clearly by the innovation in technology sector. We have seen a lot of fintech disruption already in the form of digital wallets, robo-advice, instant international money transfers and free share trading,” ETF Securities head of distribution Kanish Chugh said.
Further, Chugh predicted the adoption of blockchain technology and cashless transactions is set to rise along with global payment infrastructure becoming standardised.
“The financial services industry has the strongest expected uptake of blockchain of any industry. Cryptocurrencies have shone a spotlight on blockchain and its potential, which extends to potential uses such as the ‘tokenisation’ of assets and ‘smart contracts’. Other major fintech trends include wealth moving online, the rise of alternative credit and big data,” he noted.
“We hope this ETF will meet the growing demand from investors who are seeking exposures to these trends.”
