The list of secular growth trends investors are flocking to continues to grow. And with these various niche pockets of the economy continuing to come into focus for investors, various Exchange Traded Funds (ETFs) have popped up to assist investors by generating exposure to these trends. In this article, I’m going to highlight some such ETFs tracking the financial technology (FinTech) secular trend.
The Hamilton Financial Technology ETF (TSX:HFT) is a new ETF brought on by Canadian firm Hamilton to track a sector which has received not much in the way of attention by the media. Financial technology firms help bring higher margins and heightened productivity to the financial sector, a sector which has seemingly been written off by the market during this recent global pandemic. Financial services, like nearly every other industry out there, will need to adopt technology at a faster rate or risk a future with a tediously slow growth rate.
Embedded within this fund are a core group of holdings I really like, including the likes of payment processors Visa (NYSE:V) and Mastercard (NYSE:MA), as well as various smaller cap growth companies operating in this space. The fund’s management expense ratio (MER) is reasonable and the ETF provides nice diversification in this high growth sector for the price charged. For those seeking growth with a solid secular trend underpinning said long term projection, this is an ETF to consider.
Invest wisely, my friends.
