Where is fintech going? Well, at least when the question is about fintech stocks, there’s now an easy answer in the form of the KBW Nasdaq Financial Technology Index, unveiled July 18.
The new index, introduced by Keefe Bruyette & Woods, a Stifel company, and Nasdaq, goes by KFTX for short. Among the 49 initial companies selected for the index are faces new and old to bankers. Among the firms are American Express, Bankrate, EverBank, MasterCard, Visa, PayPal, and Square. (A complete list, with stock symbols, appears at the end of this article.)
Notably, the index also includes Lending Club.
In announcing the new measure, the two companies described the organizations in the index as follows: “…companies that leverage technology to deliver financial products and services. Their distribution is nearly exclusively electronic, with limited or no ‘bricks and mortar,’ and their revenue mix is predominately fee-based.”
The announcement added that the companies “leverage new assets such as advanced data aggregation and analysis, innovative technology, and creative thinking.” Fred Cannon, KBW’s global director of research, said the index would assist the growing number of investors watching fintech stocks.
Who’s in the fintech index
The fintech index represents the tenth index run by KBW and Nasdaq. The new index includes the following companies:
ACI Worldwide, Inc. (ACIW), Alliance Data Systems Corp. (ADS), American Express Co. (AXP), Bankrate, Inc. (RATE), Black Knight Financial Services, Inc. (BKFS), Blackhawk Network Holdings, Inc. (HAWK), BofI Holding, Inc. (BOFI), Broadridge Financial Solutions, Inc. (BR), Cardtronics, Inc. (CATM), CBOE Holdings, Inc. (CBOE), CME Group, Inc. (CME), CoreLogic, Inc. (CLGX), Dun & Bradstreet Corp. (DNB), Envestnet, Inc. (ENV), Equifax, Inc. (EFX), Euronet Worldwide, Inc. (EEFT), EverBank Financial Corp. (EVER), EVERTEC, Inc. (EVTC), FactSet Research Systems Inc. (FDS), Fair Isaac Corp. (FICO), Fidelity National Information Services, Inc. (FIS), First Data Corp. (FDC), Fiserv, Inc. (FISV), FleetCor Technologies, Inc. (FLT), Global Payments, Inc. (GPN), Green Dot Corp. (GDOT), Intercontinental Exchange, Inc. (ICE), IHS Markit Ltd. (INFO), Jack Henry & Associates, Inc. (JKHY), LendingClub Corp. (LC), MarketAxess Holdings, Inc. (MKTX), , MasterCard, Inc. (MA), Moody's Corp. (MCO), MSCI, Inc. (MSCI), Nasdaq, Inc. (NDAQ), PayPal Holdings, Inc. (PYPL), S&P Global, Inc. (SPGI), SEI Investments Co. (SEIC), Square, Inc. (SQ), SS&C Technologies Holdings, Inc. (SSNC), The Western Union Co. (WU), Thomson Reuters Corp. (TRI), Total System Services, Inc. (TSS), Vantiv, Inc. (VNTV), VeriFone Systems, Inc. (PAY), Verisk Analytics, Inc. (VRSK), Virtu Financial, Inc. (VIRT), Visa, Inc. (V), and WEX, Inc. (WEX).
A companion index, KFTXT, is a total return version of the new index and was launched simultaneously.