Xtrackers MSCI Fintech Innovation UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 20 Jul 2022

Ticker: XFNT

ISIN: IE000YDOORK7

This fund offers targeted exposure to the rapidly expanding financial technology (fintech) sector, investing in companies globally that are at the forefront of disrupting traditional financial services. The portfolio comprises firms involved in digital payments, blockchain technology, financial software, peer-to-peer lending, and digital wealth management. It provides a comprehensive approach to capturing the growth potential of the entire fintech ecosystem, from emerging innovators challenging the status quo to established technology players pivoting towards financial services. By holding a diversified basket of these companies, the fund aims to capitalize on the structural shift towards a more digital, efficient, and accessible financial landscape.

The core investment thesis rests on the long-term megatrend of digitalization within finance, driven by widespread smartphone adoption, increasing internet penetration, and a strong consumer preference for seamless digital experiences. This instrument provides access to companies positioned to benefit significantly as these technologies gain market share from incumbent institutions and expand into new services and geographies. The global scope of the underlying index ensures that the portfolio captures innovation not just from established hubs like North America but also from dynamic, high-growth markets worldwide, effectively diversifying country-specific risks while maintaining a clear focus on the fintech theme.

This product is suitable for investors with a long-term growth objective and a higher tolerance for risk, given the inherent volatility of the technology sector. Key risks include the potential for increased regulatory scrutiny across jurisdictions, evolving cybersecurity threats, and intense competition. However, for those with a bullish outlook on the transformative power of technology in finance, this fund offers a convenient and efficient vehicle to participate in the growth journey of the companies reshaping how the world saves, spends, borrows, and invests.