STOXX Ltd., the operator of Deutsche Boerse Group’s index business and a global provider of innovative and tradable index concepts, has licensed the STOXX Global Fintech Index to Sumitomo Mitsui Asset Management as an underlying for an investment fund.
The index is comprised of companies associated with financial technology (fintech). These businesses use technology to change how financial services are offered to end customers. They also boost the competitive edge of traditional financial service providers by improving efficiencies and driving new products and solutions. Revere Business Industry Classification System (RBICS) data allow a detailed breakdown of the revenue sources of the eligible companies, helping this index to select companies with substantial fintech exposure.
As the second product for our Innovation Index Series, we have selected the fintech theme. Here in Japan and also globally, the financial industry is being exposed to a new wave of innovation driven by companies that provide technology and solutions for financial purposes. The STOXX Global Fintech Index captures these companies and we expect that this global theme will continue to show growth opportunities in the years to come,” said Tsuneto Iki, Executive Director of Sumitomo Mitsui Asset Management.
Fintech is vastly remodeling the transactional and profit landscape for banks, asset managers, brokers, insurers, trading venues and retail. Just think of disruptive practices such as online payments, robo advisors and peer-to-peer insurance. The STOXX Global Fintech Index aims to capture this theme and is an innovative addition to our unique thematic offering,” said Inderpal Gujral, STOXX’s Head of Product.
The underlying universe for the STOXX Global Fintech Index is the STOXX® Developed and Emerging Total Market Index. The Fintech Index follows the same revenue-based selection methodology applied by other STOXX Thematic Indices. Companies with at least 50% of their sales stemming in aggregate from a range of more than 30 fintech-related sectors are selected for the index.
These sectors include blockchain technology, commodities trading services, payment processing software, retail brokerages, financial and compliance software, money transfer services, and trade execution services. Weightings are defined by each stock’s fintech-related sector exposure multiplied by its market capitalization.