Source has launched the first European-listed exchange traded fund (ETF) tracking the fintech companies.
Source KBW NASDAQ Fintech UCITS ETF (FTEK) tracks an equal-weighted index of US fintech companies which "leverage technology to deliver financial products and services". The index is selected by a five-person committee and is made up of a concentrated basket of just 50 companies. These include financial stalwarts such as Visa (US:V) and American Express (US:AXP), stock exchange Nasdaq (US:NDAQ), peer-to-peer lender LendingClub (US:LC) and payment systems provider Square (US:SQ).
However, the various different types of companies included in the index the ETF tracks highlight the issue with an investment theme such as fintech, which arguably is more of a buzzword than a homogenous industry sector. Index provider KBW acknowledges that fintech is "not consistently defined".