One great fintech ETF to consider
Whenever you have a high-growth and relatively young industry, it can seem intimidating for investors to try choosing one or two stocks. With that in mind, one alternative that lets you profit from the fintech boom without having to pick individual stocks is an exchange-traded fund (ETF). One example is the Global X Fintech ETF (FINX -0.77%):
- The fund invests in a portfolio of fintech companies and holds about 60 stocks.
- The portfolio includes a few of the names on the list above, as well as several other big players in fintech.
- All the companies have excellent potential, but you won’t get crushed if one or two of them perform poorly.
Benefits and risks of investing in fintech stocks
Fintech stocks can allow investors to get in on the latest trends in financial technology, including mobile banking, cryptocurrency, e-commerce, payment processing, and more. However, as is the case with any emerging technology, fintech stocks can be more volatile than the average investment. Keep this in mind before you decide to invest.
How to invest in fintech stocks
The process of investing in fintech stocks is a rather straightforward one, especially if you’ve already been investing in other stocks. But even if you haven’t, here are the general steps:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock’s trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you’re willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
