Fintech & Blockchain ETF (FTEC) – Global X ETFs Australia

FTEC


Fintech & Blockchain ETF

Reasons to Consider FTEC

High Growth Potential

The global online banking users is expected to reach 3.6 billion by 2024, highlighting the vast reach in just one segment of this theme1 and the global bitcoin market is expected to surpass USD$5.4bn by 2030.2

Global Tailwinds

Fintech and blockchain are global themes, poised to benefit as both expanding broadband and mobile internet penetration coincide with a rising middle class in developing markets, historically under-served by traditional financial services, and government and industry seek to improve the accuracy, transparency, and security of financial transactions.

Changing Consumer Preferences

While Fintech companies have historically catered to the digital preferences of younger consumers, they are increasingly competing on cost and convenience across a range of more established industries like lending and insurance. 84 countries now offer bitcoin ATMs.3

1 (Gitnux, 2023) https://gitnux.org/online-banking-usage-statistics/
2 (Capitial.com, 2023) https://capital.com/bitcoin-price-prediction-2030-2050
3 (Statista, 2024) https://www.statista.com/statistics/343147/number-of-bitcoin-atms-countries/

Product Information As of 20 Jun 2024

Inception Date 13 Oct 2021
Management Costs (% p.a.) 0.69
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Trust
SMSF Eligible Yes

NAV Information As of 20 Jun 2024

NAV/Unit (A$) 8.92090000
Currency (NAV) AUD
Shares Outstanding 740,161
AUM (A$) 6,602,938.40
NAV History File View

Product Summary

The Global X Fintech & Blockchain ETF (FTEC) seeks to invest in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. This theme also includes those positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration.

Product Objective

The Global X Fintech & Blockchain ETF (FTEC) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Developed Markets Fintech & DeFi Index.

Trading Details

Ticker FTEC
Bloomberg Code FTEC AU Equity
ISIN AU0000171472
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited

Benchmark Information

Benchmark Indxx Developed Markets Fintech and DeFi Index
Provider Indxx, LLC.
Ticker IFINDEFN

Distributions As of 31 May 2024

12-Month Yield 0.05%
12-Month Franking Level 0.00%
Distribution Frequency Semi-Annually
Distribution History View

Performance Table As of 20 Jun 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -4.14% -4.12% -0.02% 0.68%
3 Months -6.21% -6.10% -0.12% 0.68%
1 Year 22.02% 23.33% -1.31% 1.09%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. -4.14% -3.17% -0.97% 1.55%

Top Holdings As of 21 Jun 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
1.89 AVANZA BANK HOLD BJXMLF7 267.60 3,244 124,626
1.88 GUIDEWIRE SOFTWA B7JYSG3 135.61 611 124,308
1.84 VERTEX INC - A BMX6DM1 34.49 2,346 121,392
1.84 GALAXY DIGITAL H BD5H1G9 15.91 6,962 121,364
1.77 NORDNET AB PUBL BNDLH43 224.40 3,637 117,167
1.74 NUVEI CORP-SUB V BMFNHJ5 43.83 2,396 115,065
1.73 FAIR ISAAC CORP 2330299 1,412.76 54 114,454
1.73 H&R BLOCK INC 2105505 53.00 1,437 114,262
1.73 HUB24 LTD BD4T5X1 45.00 2,525 113,625
1.72 INTERACTIVE BROK B1WT4X2 120.25 630 113,656
1.71 ENVESTNET INC B474ZK7 62.25 1,210 113,004
1.69 EXPERIAN PLC B19NLV4 37.16 1,574 111,311
1.68 MOODY'S CORP 2252058 422.71 175 110,981
1.68 THOMSON REUTERS BNBXPB4 166.90 443 110,924
1.67 HKEX 6267359 263.20 2,227 112,680
1.67 FIDELITY NATIONA 2769796 76.48 959 110,036
1.65 TOAST INC-A BP6D7B7 25.52 2,844 108,887
1.64 WOLTERS KLUWER 5671519 154.85 436 108,603
1.61 S&P GLOBAL INC BYV2325 438.71 162 106,625
1.59 DEUTSCHE BOERSE 7021963 190.30 342 104,691
1.58 LONDON STOCK EX B0SWJX3 96.04 571 104,363
1.58 TRADEWEB MARKE-A BJXMVK2 105.86 656 104,184
1.56 INTERCONTINENTAL BFSSDS9 137.11 502 103,262
1.56 XERO LTD B8P4LP4 130.58 779 101,722
1.54 NEXI SPA BJ1F880 5.72 11,040 101,651
1.52 CBIZ INC 2730781 75.56 887 100,550
1.52 SS&C TECHNOLOGIE B58YSC6 62.15 1,076 100,328
1.52 JACK HENRY 2469193 165.88 403 100,292
1.51 FISERV INC 2342034 149.94 443 99,653
1.51 NASDAQ INC 2965107 59.23 1,120 99,524
1.50 VISA INC-CLASS A B2PZN04 276.82 239 99,257
1.50 WORLDLINE BNFWR44 10.12 6,090 99,138
1.49 HUATAI SECURIT-H BWVFT00 8.93 57,536 98,771
1.49 DUN & BRADSTREET BLF9ZT2 9.17 7,173 98,682
1.49 MARATHON DIGITAL BLR7B52 20.66 3,181 98,596
1.49 ASSETMARK FINANC BKF9D68 34.27 1,914 98,406
1.49 MORNINGSTAR INC B081VR8 288.46 227 98,238
1.48 INTUIT INC 2459020 616.08 106 97,974
1.48 LENDINGCLUB CORP BK95GR4 8.05 8,104 97,873
1.46 GARTNER INC 2372763 450.48 143 96,645
1.46 MASTERCARD INC-A B121557 452.51 142 96,402
1.45 CME GROUP INC 2965839 198.49 321 95,590
1.43 TRANSUNION BYMWL86 73.41 859 94,605
1.43 FACTSET RESEARCH 2329770 408.35 154 94,345
1.42 PAYPAL HOLDINGS BYW36M8 59.80 1,048 94,022
1.42 EQUIFAX INC 2319146 239.77 260 93,527
1.41 COINBASE GLOBA-A BMC9P69 235.03 264 93,088
1.39 WESTERN UNION B1F76F9 12.20 5,010 91,699
1.37 JAPAN EXCHANGE G 6743882 3,685.00 2,600 90,554
1.37 RIOT PLATFORMS I BD9F675 10.42 5,784 90,420
1.35 CORPAY INC BMX5GK7 262.45 227 89,380
1.35 MSCI INC B2972D2 482.79 123 89,090
1.34 SOFI TECHNOLOGIE BM8J4C2 6.32 9,313 88,303
1.31 UPSTART HOLDINGS BL53QN5 21.88 2,630 86,332
1.31 EDENRED B62G1B5 41.28 1,298 86,190
1.26 AFFIRM HOLDINGS BMF9NM8 30.14 1,847 83,517
1.24 PAGSEGURO DIGI-A BFWK4R7 11.28 4,845 81,992
1.21 GMO PAYMENT GATE B06CMQ9 8,243.00 1,000 77,908
1.19 ADYEN NV BZ1HM42 1,159.00 42 78,303
1.17 BLOCK INC BYNZGK1 62.74 824 77,560
1.12 BILL HOLDINGS IN BKDS4H5 47.45 1,042 74,177
1.12 STONECO LTD-A BGKG6M3 11.95 4,132 74,079
1.11 XP INC - CLASS A BK4Y052 17.98 2,708 73,048
1.10 GLOBAL PAYMENTS 2712013 94.37 515 72,914
1.10 WISE PLC - A BL9YR75 6.86 5,579 72,782
0.79 DLOCAL LTD BKVF490 7.84 4,441 52,235
0.71 LUFAX HOLDIN-ADR BR0V7R7 2.22 14,112 47,000
Holdings are subject to change.

Sector Breakdown As of 21 Jun 2024

Sector Weight (%)
Financials 68.9
Information Technology 15.6
Industrials 12.4
Consumer Discretionary 1.7
Other/Cash 1.4

Country Breakdown As of 21 Jun 2024

Country Weight (%)
United States 64.4
Sweden 3.7
Brazil 3.5
Canada 3.4
Netherlands 2.8
France 2.8
Britain 2.7
Japan 2.6
China 2.2
Australia 1.7
Ireland 1.7
Other/Cash 8.5

Research

FAQs

  • What is “fintech”?

    Fintech is a combination of the words finance and technology. Fintech companies are those bringing cutting-edge technology to the financial services industry, and in the process ruffling the feathers of incumbent banks, insurers and wealth managers. Fintech adoption is surging thanks to the world going cashless, which has been a boom for digital payments and point of sale companies. By the adoption of smartphones, which has rocketed digital wallets. By the growth of big data and cloud, which has led to a surge in research providers and financial software companies and by nascent blockchain technology, which if used to its potential could disrupt much of financial services.
  • What is “decentralised finance”?

    Decentralised finance, sometimes referred to as “blockchain”, is distributed ledger technology. Most media coverage of this exciting new area has focused on bitcoin and other cryptocurrencies. However, there is more to blockchain than just cryptos. Promising blockchain innovations include “tokenisation”, which could allow private assets, such as real estate and cars, to trade in tokenised form in a similar way to shares in companies. Another potentially interesting area is “smart contracts”. This is where the terms of an agreement between companies are automatically executed by a blockchain, without the need for lawyers.
  • How are the companies in the index identified?

    Indxx starts by looking at companies within developed markets that meet minimum size and liquidity requirements. Indxx then hones in on several “sub-themes”, which they – and Global X – believe are relevant to fintech and decentralised finance. These sub-themes are decentralised finance, digital payments, financial data provider and analyser, financial enterprise solutions, peer-to-peer lending, personal finance software, tax compliance software, trading and capital markets, and point-of-sale. Within these sub-themes, companies are assessed based on revenue purity. Those making more than 50% of their revenue from these sub-themes are eligible for index inclusion. Companies eligible are selected based on market capitalisation, with each sub-theme capped at providing 10 companies except for decentralised finance which is capped at 20.
  • How are companies in FTEC weighted?

    FTEC uses an equal weight methodology, which is where an equal value of each company included in the index is bought at rebalance. Assuming no market movements, this would mean that each of the 75 companies included in the index would receive 1.33% of the fund’s weight at each rebalance. Equal weighting may have the advantage of allowing investors to “spread their bets” across a diverse range of companies in a fast-changing industry more equally. However, equal weighting has risks. These include potentially higher volatility as it lowers the median market capitalisation of a portfolio compared with market weighted approaches.
  • Why use FTEC for exposure to fintech?

    Fintech and blockchain are rapidly evolving industries. Afterpay was founded in 2014, yet as of August 2021, it has become one of Australia’s largest companies by market capitalisation. Picking individual companies that are likely to win from any theme is very difficult. But picking winners in new areas like fintech can be harder still due to the speed at which things can change. A strength of FTEC is that it offers diversification, providing investors with a basket of 75 researched stocks that capture the fintech theme. The result is that FTEC’s portfolio is likely to be less volatile than picking individual stocks. FTEC also provides a way to access global companies in a single trade. While some fintech companies – like Afterpay and Xero – trade on Australian exchanges, most global companies do not. This spares investors the work and cost of buying a portfolio of companies on foreign exchanges. As FTEC is locally domiciled, there is also less paperwork for end investors. Investors will not be required to complete W8 BEN forms.
  • How can you use FTEC in a portfolio?

    1. To express long-term strategic or short-term tactical views on disruptive financial technology.
    2. To complement financial services sector exposure with tech-aligned companies outside of the GICS classification (the industry sector classification created by MSCI and S&P Dow Jones Indices).
    3. To aid portfolio diversification via investment in companies that are largely absent from the Australian market.
  • Does FTEC overlap with other Global X funds?

    We design our ETFs with a view of minimising the amount of overlap between each. In this way, investors who buy more than one of our funds avoid buying the same stocks repeatedly. The precise amount of overlap between each fund can differ as the stocks moving in and out of each ETF change at index rebalance/reconstitution. Whatever overlap exists is usually small. For investors wanting to know the exact quantity of overlap between specific ETFs, please feel free to contact us.
  • Where can I buy and sell FTEC?

    When it launched, FTEC was listed on the CBOE exchange, the alternative exchange to the ASX. This means that if your broker is not connected to CBOE, then you will be unable to buy and sell FTEC. Most share trading platforms (such as CommSec, Open Markets, Wealthhub and more) are connected to the CBOE exchange and can facilitate your trade. If the platform you use is not connected with CBOE or you are having difficulties locating FTEC online, then we suggest contacting their trade and support team to enquire what is the best possible way to trade FTEC.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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