What is the Nasdaq KFTX Fintech Index?

KFTX

The KBW Nasdaq KFTX Fintech Index is a new index launched in 2016 to track companies under the financial technology (fintech) category.

According to the Nasdaq website,The KBW Nasdaq Financial Technology Index is designed to track the performance of financial technology companies that are publicly traded in the U.S. Since financial technology companies are not easily categorized into a single industry group, Index eligibility is not limited to securities within a particular industry classification. Securities eligible for index inclusion leverage technology to deliver financial products and services. Their distribution is nearly exclusively electronic, with limited to no “bricks and mortar,” and their revenue mix is predominantly fee-based. The Index began on July 18, 2016, at a base value of 1000.” As of 5/8/17, the index is comprised of the following 50 stocks, which encompass several categories of business including credit cards, trading exchanges, credit scoring, banks, online lenders, payments, data processing & research, consulting and more.

  1. ACI WORLDWIDE, INC. (ACIW)
  2. ALLIANCE DATA SYS CP (ADS)
  3. AMER EXPRESS INC (AXP)
  4. BANKRATE, INC. (RATE)
  5. BLACKHAWK NETWORK HO (HAWK)
  6. BOFI HOLDING, INC. (BOFI)
  7. BROADRIDGE FIN SOL (BR)
  8. CARDTRONICS PLC (CATM)
  9. CBOE HOLDINGS, INC. (CBOE)
  10. CME GROUP INC (CME)
  11. CORELOGIC, INC. (CLGX)
  12. ENVESTNET, INC (ENV)
  13. EQUIFAX INC (EFX)
  14. EURONET WORLDWIDE (EEFT)
  15. EVERTEC, INC. (EVTC)
  16. FACTSET RESEARCH Sys (FDS)
  17. FAIR ISAAC CP (FICO)
  18. FIDELITY NAT INF SVC (FIS)
  19. FINANCIAL ENGINES CM (FNGN)
  20. FIRST DATA CORP (FDC)
  21. FISERV, INC. (FISV)
  22. FLEETCOR TECH (FLT)
  23. GLOBAL PAYMENTS INC (GPN)
  24. GREEN DOT CORP (GDOT)
  25. IHS MARKET LTD CMN (INFO)
  26. INTERCONTINENTAL XCH (ICE)
  27. JACK HENRY & ASSOC (JKHY)
  28. LENDINGCLUB CORP (LC)
  29. LENDINGTREE, INC. (TREE)
  30. MARKETAXESS HOLDINGS (MKTX)
  31. MASTERCARD INC (MA)
  32. MOODY’S CORP (MCO)
  33. MSCI INC (MSCI)
  34. NASDAQ, INC. CMN STK (NDAQ)
  35. PAYPAL HOLDINGS (PYPL)
  36. S&P GLOBAL INC. (SPGI)
  37. SEI INVESTMENTS CO (SEIC)
  38. SQUARE, INC. (SQ)
  39. SS&C TECHNOLOGIES (SSNC_
  40. THE NEW D&B CORP (DNB)
  41. THOMSON REUTERS CORP (TRI)
  42. TOTAL SYSTEM SVC INC (TSS)
  43. VANTIV, INC. (VNTV)
  44. VERIFONE SYSTEMS INC (PAY)
  45. VERISK ANALYTICS INC (VRSK)
  46. VIRTU FINANCIAL CM A (VIRT)
  47. VISA INC. (V)
  48. WESTERN UNION COMPAN (WU)
  49. WEX INC. (WEX)
  50. WISDOMTREE INVSTMNTS (WETF)

The KFTX Fintech index is one of eleven indexes that are in partnership with KBW and Nasdaq.  The indexes are currently governed by a committee of five, comprised of four full-time KBW employees and one full-time Nasdaq employee.  The committee strives to keep turnover of the stocks in the index to a minimum and meets quarterly to review any necessary changes. FintekNews does a daily analysis of the KBW Nasdaq KFTX Fintech Index and also offers a general overview of the fintech sector in relation to the overall market.  Our commentator is Bill Taylor, CEO of our firm and a long-time trader and hedge fund manager, who began his trading career as an original member of the Chicago Board Options Exchange.