eToro has created a passive investor portfolio exclusively consisting of shares in 40 prominent fintech companies.
To assemble this portfolio, eToro’s investment experts meticulously selected fintech firms that are seen as “leading the fintech revolution.” They evaluated these companies based on market capitalization, liquidity metrics, and analyst ratings. The initial allocation features industry leaders such as Block, Lemonade, Adyen, and Xero, alongside emerging players like Stone, Nexi, and SoFi. This portfolio will be rebalanced annually.
Dani Brinker, head of investment portfolios at eToro, stated: “The fintech industry represents one of the most disruptive trends of the 21st century, offering a compelling diversification opportunity for investors by merging the dynamic growth of the tech sector with the stability provided by traditional financial institutions.”
Despite facing challenges over the past year, the fintech sector, alongside the broader tech industry, is poised for recovery. Analysts predict that the market capitalization of fintech could soar to $1.5 trillion by 2030.
“This new portfolio delivers a well-curated blend of top-performing companies across various segments within the fintech ecosystem, which includes paytech, insurtech, digital banking, and trading,” Brinker added. “As a fintech company, we are thrilled to provide our users with the chance to invest in companies that are driving the mission of opening up global financial markets.”
Investors can begin with an initial investment of $500, gaining access to tools and charts for tracking the portfolio’s performance. Additionally, eToro’s social feed will keep them informed about the latest developments in the sector.