The Equity: Thematic – FinTech category captures the dynamic and rapidly evolving intersection of finance and technology. These funds invest in companies at the forefront of disrupting traditional financial services, including digital payments, blockchain technology, peer-to-peer lending, and financial software. The core investment thesis is to capitalize on the long-term structural shift away from legacy banking and towards more innovative, efficient, and accessible digital solutions. For an investor, this category offers a growth-oriented allocation, providing exposure to companies with the potential for high growth as they reshape the future of money.
The FinTech space is remarkably diverse, encompassing a wide range of business models and technologies. This category can be broken down into several distinct sub-groups, each with a unique focus. “Broad-based” funds like the Global X FinTech ETF (FINX) and ARK Fintech Innovation ETF (ARKF) offer multi-theme exposure across the entire landscape. More specialized funds target specific niches, such as “Blockchain & Digital Assets,” with ETFs like the Amplify Transformational Data Sharing ETF (BLOK) focusing on the underlying ledger technology. Other sub-groups include “Crypto Miners,” like the CoinShares Bitcoin Mining ETF (WGMI), which invest in the companies that secure and validate transactions on crypto networks, and “Crypto Adopters,” like the Bitwise Bitcoin Standard Corporations ETF (OWNB), which focus on companies holding significant amounts of bitcoin on their balance sheets.
Summary (as of 7/31/2025)
- Number of Funds: 24
- Total Assets Under Management (AUM): $4.9B
- Average Expense Ratio: 0.65%
- 1-Month Net Flows: $0.18B
- 1-Year Net Flows: ($1.03B)
The FinTech category represents a significant, multi-billion dollar segment of the thematic landscape. The positive net flows over the last month suggest renewed investor interest and a bullish short-term sentiment. However, the negative flows over the past year indicate that the category has faced headwinds, likely due to broader market volatility and shifts in risk appetite, making the recent positive trend a noteworthy development.
Performance Snapshot (as of 7/31/2025)
The performance within the FinTech category shows a significant divergence, underscoring the importance of careful fund selection. The category’s average 1-month return was a solid 3.84%. However, looking at individual funds reveals a much wider range of outcomes. The top-performing fund for the month was the Invesco Alerian Galaxy Crypto Economy ETF (SATO), which posted an impressive gain of 9.50%. In stark contrast, the bottom-performing fund was the Amplify Digital Payments ETF (IPAY), with a return of -1.72%. This creates a total performance spread of 11.22% between the best and worst performers in just a single month, highlighting that an investor’s experience in this category is heavily dependent on the specific strategy they choose.
Drill Down: A Glimpse into the Full Report
The summary data only scratches the surface. Our in-depth report reveals critical insights that can help you make more informed decisions. Here are a few key takeaways:
- Structure & Market Share: Discover how concentrated this category is, with the top 10 funds controlling a remarkable portion of the total assets.
- Flows & Investor Sentiment: While the category saw significant inflows last month, some major funds experienced significant outflows. See which strategies investors are moving towards and away from.
- Risk-Adjusted Returns: The full report identifies funds like the First Trust Indxx Innovative Transaction & Process ETF (LEGR), which has delivered a top-decile Sharpe Ratio of 1.14 over the last three years.
- Portfolio Composition: Understand what you truly own. The average fund in this category has a 47.1% allocation to the Technology sector.
- Fundamentals: Pinpoint funds that align with your investment style. Whether you’re seeking Value, Quality, or Growth, our report scores every fund, highlighting top-rated ETFs in each dimension.
This is just a glimpse of the data available in our full report. By creating a free account, you can access the complete Equity: Thematic – FinTech report and unlock all of these insights.
ETF category data is updated daily in the Home Office section of the ETF Action platform. Monthly summary PDFs (available to DIY subscribers and up) and in-depth excel data packs (available to Advisor Pro subscribers and up) are available on over 100 ETF categories.
This category snapshot was prepared with the assistance of artificial intelligence.
