Keefe, Bruyette & Woods, a leading independent authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors, and exchange operator Nasdaq Inc. have cooperated to announce the KBW Nasdaq Financial Technology Index (KFTX) that enables tracking fintech companies.
“We are excited to continue our valued relationship with KBW and to partner on a creating a benchmark for the evolving FinTech industry,” said Dave Gedeon, Vice President and Head of Research & Development, Nasdaq Global Indexes. “The index will serve as the benchmark for investors interested in companies that leverage technology to deliver financial products and services and we look forward to collaborating on additional innovative products in the future.”
Nasdaq unveiled in the press release that the KFTX includes 49 fintech companies representing almost one-fifth (18%) of the investable universe of domestic financial services firms and nearly 4% of the investable domestic equity universe. Total market capitalization makes up $785 billion.
FinTech is a relatively new notion often used to describe different types of companies. However, FinTech sector has already become a focus of huge investment interest. To be substantive, we give the figures – investments in the FinTech made up $19.1 billion in 2015 comparing to just $2.4 billion in 2011. The data is provided by KPMG and CBInsights.
Keefe, Bruyette & Woods has combined its expertise in financial services with Nasdaq’s long history of innovative market-leading transparent indexes creation to offer as precise index representation of FinTech as possible today.
“Technology is changing the way financial services are both created and delivered to the market,” said Fred Cannon, global director of research at KBW. “The KFTX provides a relevant benchmark within the fintech space, which will be valuable to the increasing number of investors closely watching this area.”
The list of companies included in the KFTX looks as follows: ACI Worldwide, Alliance Data Systems, American Express, Bankrate, Black Knight Financial Services, Blackhawk Network Holdings, BofI Holding, Broadridge Financial Solutions, Cardtronics, CBOE Holdings, CME Group, CoreLogic, Dun & Bradstreet, Envestnet, Equifax, Euronet Worldwide, EverBank Financial, EVERTEC, FactSet Research Systems, Fair Isaac Corp., Fidelity National Information Services, First Data, Fiserv, FleetCor Technologies, Global Payments, Green Dot, Intercontinental Exchange, IHS Markit, Jack Henry & Associates, LendingClub, MarketAxess Holdings, Mastercard, Moody’s, MSCI, Nasdaq, PayPal Holdings, S&P Global, SEI Investments, Square, SS&C Technologies Holdings, Western Union, Thomson Reuters, Total System Services, Vantiv, VeriFone Systems, Verisk Analytics, Virtu Financial, Visa and WEX.
According to Nasdaq, the KFTX will be rebalanced quarterly and the update on members will take place on the third Friday in December every year. In addition to the KFTX, there is a total return version of the Index that has been simultaneously launched – KBW Nasdaq Financial Technology Total Return Index (KFTXT).