Earnings season could be a turning point for the financial sector, particularly for fintech companies that often get overshadowed by larger Wall Street firms. According to Wolfe Research, the Global X FinTech ETF (FINX) is looking attractive after underperforming the market for some time.
Technical analyst Rob Ginsberg notes that many fintech and financial service names are reporting earnings this week and next, providing an opportunity for these companies to shine. The FINX ETF has been building a solid base over the past two years and is now at a crucial point where it could see a breakout.
With over $300 million in assets, the FINX ETF has shown signs of a rebound in 2024, despite a previous decline. While major banks have already reported their earnings, there are still financial companies with upcoming potential catalysts. Some of the top holdings in the FINX ETF are yet to announce their quarterly results, including PayPal.
Ginsberg highlights positive technical indicators for the ETF, such as an uptrend since October and strong trendline support. However, there is still the risk that earnings reports could impact financial technology stocks and the fund. Additionally, investors should be aware of the ETF’s expense ratio of 0.68%.
Overall, the earnings season could be a significant event for fintech companies and the FINX ETF, presenting an opportunity for these smaller players to shine in the financial sector.