Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

How to Invest in the Internet of Things and the FinTech Revolution

  • (0:45) - The World of Fintech: Where Is The Growth?
  • (4:00) - Global X FinTech Thematic ETF: FINX
  • (8:50) - The Massive Growth of the Internet of Things
  • (13:30) - Global X Internet of Things ETF: SNSR
  • (17:15) - The Future of Thematic Investing
  • (18:20) - Episode Roundup: Podcast@zacks.com

The tech world has exploded into a number of new industries in recent years. Segments that were once relatively untouched by the recent revolutions that we have seen in the world of computing, communications, and information are now finally being revamped with high tech processes.

Two such major shifts as of late in the market come to us in the world of FinTech—which blends technology and finance into new types of banking, card processing, and the like—and also the Internet of Things, a wide market that touches everything from household products to industrial machinery by connecting a variety of devices to the internet so that they can send and receive data or instructions.

Both FinTech and the Internet of Things look to be high growth areas and could completely change their respective industries in the near future too. And with this kind of growth potential, investors have to be asking what are the key points to know about these impressive industries?

Well, for some insights on these new areas of the tech world, I spoke to Jay Jacobs, the VP, Director of Research at Global X for this week’s Dutram Report. We discussed these two markets in greater detail, and what investors need to be aware of in both of these increasingly in-focus corners of the stock and ETF world.

FinTech

First up, we discussed the topic of ‘FinTech’, arguably the less famous of the two areas, though it is certainly an important market in its own right. Jay clues us in on the growth that is being seen in this market as of late, and what the key industries are for the near future.

We also talk about the Global X FinTech Thematic ETF (FINX) and how investors can obtain broad exposure to this market via the fund. The product goes beyond usual suspects like PayPal (PYPL), and we discuss some of the other components here such as Intuit (INTU) or those in the banking and asset management side, and how they fit into the overall theme.

Jay also talks about what kinds of companies—from a cap perspective—are generally included in the fund, and what the most built-up areas of the FinTech ecosystem are right now. Check out the podcast for additional insights though!

Internet of Things

After that, we discuss one of my favorite topics in the new-tech world, and that is the Internet of Things. I am a huge fan of Amazon’s (AMZN) entrant in this space, the Echo, but Jay explains how the market goes well beyond this consumer product and hits a variety of areas.

One such segment that could be a huge beneficiary of the soaring demand for internet-connected devices is the semiconductor space. Jay discusses how the Internet of Things could be a huge growth avenue for the market, and how this may benefit players like Skyworks (SWKS) or even Intel (INTC) in the process.

Jay also discusses the Global X way to play the broad industry, the Internet of Things ETF (SNSR). We talk about the construction of the fund, the level of foreign exposure here, and how companies are included or not in the ETF. This is especially important for this industry, as many companies are not completely focused on the Internet of Things world, so make sure to check out the podcast for the Global X process here.

Bottom Line

But what do you think about these new areas of the tech world? Make sure to write us in at podcast @ zacks.com or find me on Twitter 

 to give us your thoughts on this, or anything else in the fund market.

But for more news and discussion regarding the world of investing, make sure to be on the lookout for the next edition of the Dutram Report (each and every Thursday!) and check out the many other great Zacks podcasts as well!

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
 
Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report
 
Intuit Inc. (INTU): Free Stock Analysis Report
 
GLBL-X FINTECH (FINX): ETF Research Reports
 
GLBL-X IOT ETF (SNSR): ETF Research Reports
 
Intel Corporation (INTC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research