Strategic Fintech & Digital Payments Sector Index
Why Exposure to this Index
Strategic Fintech & Digital Payments Sector Index measures the performance of companies that specialize in providing financial technology and digital payment products and services including cloud-based business software solutions and data analytics; Managed payments systems and solutions; and Blockchain and alternative currency systems.
The Strategic Fintech & Digital Payments Sector Index Index seeks to provide total return by investing in a passively managed, concentrated portfolio of companies that engage in financial technology activities.
- Designed to capitalize on the burgeoning megatrends that are disrupting the financial services and digital payments industry.
- Targets companies in the US and developed markets that operate across two fintech sub-sectors, including:
- Fintech Enterprise Solutions sub-sector: Includes companies that offer cloud-based financial services business software solutions, services, and data analytics to vertical markets (i.e., businesses where vendors serve a specific audience and their set of needs).
- Fintech Integrated Platforms sub-sector: Includes companies that provide (i) managed payments systems and solutions, (ii) point-of-sale and business tools, (iii) software that is specific to vertical markets, (iv) financial services, or (v) blockchain and alternative currency systems.
- Companies are initially identified by industry and sector, and are then further reviewed on the basis of operations related to fintech and digital payment activities.
- The index is composed of the 50 or so largest eligible companies using float adjusted capitalization, and the largest companies make up a greater percentage of the overall portfolio.