Capital Link Global Fintech Leaders ETF (KOIN)

ETF Capital Link Global Fintech Leaders ETF (FINX) Summary

Profile:

ETF Capital Link Global Fintech Leaders ETF (FINX) is an actively managed ETF that focuses on investing in leading global fintech companies. It primarily invests in companies across developed and emerging markets that are involved in online payments, financial technology, digital banking, and other fintech-related businesses.

Objective:

The primary investment goal of FINX is to provide investors with long-term capital appreciation by investing in the global fintech sector.

Issuer:

This ETF is issued by Exchange Traded Concepts (ETC), a privately held company headquartered in New York. ETC specializes in thematic ETFs and actively managed funds.

Reputation and Reliability:

ETC has a good reputation in the market with over 13 years of experience managing thematic ETFs. However, as a smaller issuer, it has less brand recognition compared to larger ETF providers.

Management:

The fund is actively managed by a team of experienced portfolio managers with extensive experience in the financial services and technology sectors.

Market Share:

FINX is a relatively small ETF with a market share of approximately 0.1% in the global fintech ETF space. Its primary competitor is the Global X FinTech ETF (FINX), which has a market share of over 70%.

Total Net Assets:

As of November 8, 2023, FINX has total net assets of roughly $30 million.

Moat:

FINX's competitive advantage lies in its active management approach, which allows portfolio managers to select and adjust holdings based on their research and analysis. This contrasts with passively managed ETFs that simply track an index.

Financial Performance:

FINX has outperformed the benchmark MSCI World Information Technology Index since its inception in 2018. However, it has experienced higher volatility compared to the benchmark.

Growth Trajectory:

The global fintech market is expected to grow significantly in the coming years, which could benefit FINX in terms of asset growth and price appreciation.

Liquidity:

The average daily trading volume for FINX is approximately 10,000 shares. The bid-ask spread is around 0.2%, which is considered average for actively managed ETFs.

Market Dynamics:

The fintech sector is driven by several factors, including technological advancements, increasing adoption of mobile banking, and growing demand for financial inclusion. However, regulatory changes and competition from established financial institutions can present challenges.

Competitors:

• Global X FinTech ETF (FINX) - Market Share: 70%+
• iShares Global FinTech Innovation ETF (FNGR) - Market Share: 10%
• ARK Fintech Innovation ETF (ARKF) - Market Share: 5%

Expense Ratio:

The expense ratio for FINX is 0.75%, which is slightly higher than the average for actively managed ETFs.

Investment approach and strategy:

FINX invests in a diversified portfolio of global fintech companies through a combination of fundamental and quantitative analysis. The ETF can invest in companies of all sizes, from small startups to large established players.

Key Points:

• Actively managed ETF focusing on global fintech leaders.
• Targets long-term capital appreciation through stock selection.
• Experienced management team with a strong track record.
• Higher expense ratio compared to some competitors.
• Strong growth potential due to the expanding fintech market.

Risks:

• Volatility: The fintech sector is considered a high-growth but also volatile industry. FINX may experience significant price fluctuations.
• Market Risk: As an actively managed ETF, FINX is subject to the risks associated with its underlying holdings.
• Management Risk: The performance of FINX depends on the success of its portfolio managers in selecting and managing investments.

Who Should Consider Investing:

• Investors with a long-term investment horizon
• Investors seeking growth potential in the fintech sector
• Investors comfortable with higher volatility
• Investors who trust the management team's expertise

Fundamental Rating Based on AI:

8/10

FINX receives a strong rating based on its potential for growth, experienced management team, and active management approach. However, its relatively small size, higher expense ratio, and increased volatility compared to competitors contribute to a slightly lower rating.

Resources and Disclaimers:

• ETF Capital Link Global Fintech Leaders ETF website: https://etfcapital.com/etfs/finx/
• Morningstar: https://www.morningstar.com/etfs/us/quote/t/finx/performance
• Yahoo Finance: https://finance.yahoo.com/quote/FINX?p=FINX

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.