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Source launches fintech ETF

Source launches fintech ETF

Source has launched an exchange-traded fund (ETF) to track the growing US fintech sector.

The Source KBW NASDAQ Fintech Ucits ETF will track the KBW NASDAQ Financial Technology Index, which features fintech companies publicly listed in the US.

The index is made up of 50 companies, including household names Paypal and Visa, with market capitalisations ranging from under $1 billion (£818 million) to over $150 billion.

In an effort to ensure performance comes from across the sector and prevent largest players from dominating the index the 50 companies are weighted equally.

The fund will carry an ongoing charge of 0.49% a year.

‘Fintech companies are reshaping every part of financial services, from consumer finance and payments to insurance and data processing,’ said Chris Mellor, executive director, equity product management at Source.

‘The growth of fintech accelerated after the financial crisis when traditional financial services were under extreme pressure just as consumer behaviour was changing and technologies such as smartphones, cloud computing and big data were taking off.'

He added: ‘Faster, more efficient and more joined-up technology in the financial arena has driven stellar growth for fintech companies and this trend shows no sign of slowing.’ 

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