FINX: GLOBAL X FINTECH ETF
What this ETF is trying to do
The GLOBAL X FINTECH ETF (ticker: FINX) is an exchange-traded fund designed to invest in the financial technology sector. This means it focuses on companies that use technology to improve or change how people and businesses manage money. According to the top holdings, this includes companies like Robinhood Markets Inc Class A and Block Inc Class A.
What the numbers show
The data shows that FINX has experienced a recent decline in its share price. Here is a breakdown of the performance:
• Year-to-Date (YTD) Price Return: -15.07%
• One-Year Price Return: -28.83%
• Three-Year Price Return: +25.16%
It is important to distinguish between price return and total return. Price return only tracks the change in the share price itself. Total return includes both the price changes and any distributions paid out.
• YTD Total Return: -14.93%
• One-Year Total Return: -28.30%
• Three-Year Total Return: +27.07%
For a long-term view, the five-year total return is -45.00%. To help visualize recent changes, the estimated price from roughly one year ago was $35.12, compared to the current price of approximately $24.99.
Income and distribution explanation
FINX provides a distribution yield of approximately 0.85%. This represents the cash distributions relative to the ETF's price. The fund has a payout count of 2 over the last 12 months, and the distribution frequency is described as irregular or less frequent.
When looking at income, it is important to remember that a distribution yield is not the same as total return. A high yield does not guarantee that an investor will earn that percentage in overall profit.
NAV erosion explanation
The fund has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration and a weak erosion score. Specifically, the fund has an erosion score of 30, which is labeled as "Significant price erosion."
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While the market price has fallen significantly, we cannot use this alone to prove that the Net Asset Value (NAV) itself declined.
Pros
• Three-Year Growth: Over a three-year period, the fund showed a positive total return of approximately 27.07%.
• Sector Focus: The fund provides exposure to a wide variety of fintech companies, with 80 total holdings listed.
Cons
• Recent Price Decline: The fund has seen a significant share-price decline over the last year.
• Erosion Risk: The fund carries a severe erosion-risk flag due to its price trends.
• Low Income Rating: The fund has an income rating grade of "F."
Beginner takeaway
Investors researching FINX should note that while the fund has shown growth over a three-year window, it has faced significant price declines more recently. Because the fund carries a severe erosion-risk flag and shows significant price erosion, it is important to understand that recent share prices have trended downward. Always remember that distributions provide cash, but they do not guarantee that your original investment amount will stay the same.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ROBINHOOD MARKETS INC CLASS A | HOOD | 8.85% |
| 2 | BLOCK INC CLASS A | XYZ | 6.59% |
| 3 | PAYPAL HOLDINGS INC | PYPL | 6.36% |
| 4 | n/a | COIN | 5.61% |
| 5 | FISERV INC | FISV | 4.14% |
| 6 | GLOBAL PAYMENTS INC | GPN | 4.13% |
| 7 | ADYEN NV | n/a | 4.12% |
| 8 | SOFI TECHNOLOGIES INC ORDINARY SHARES | SOFI | 3.81% |
| 9 | n/a | AFRM | 3.65% |
| 10 | INTUIT INC | INTU | 3.59% |