With earnings season just around the corner, technical analyst Rob Ginsberg believes that this could be a turning point for the financial sector that is often overshadowed by Wall Street giants. He points out that with many big bank earnings already behind us, several fintech and financial service companies are set to report their own earnings in the coming weeks.
Ginsberg believes that the Global X FinTech ETF (FINX) presents an attractive opportunity after a period of underperformance compared to the broader market. The FINX ETF has been building a strong base over the past two years and is now at a critical point where it could potentially regain momentum. Despite a sharp decline in late 2021, the FINX ETF has seen a total return of over 7% in the last three months and has shown signs of a rebound in 2024.
The FINX ETF holds many exciting prospects for investors, including Paypal, one of its top holdings. Ginsberg also noted positive technical signals for the ETF, including an upward trend since October and strong trendline support. However, investors should be aware that earnings reports could have both positive and negative impacts on financial technology stocks and the FINX ETF. Additionally, they should consider the fund’s expense ratio of 0.68% before making investment decisions.
In summary, earnings season could bring new opportunities for investors looking to invest in fintech and financial service companies through the Global X FinTech ETF (FINX). While there are potential risks associated with investing in these companies, Ginsberg’s analysis suggests that there are still catalysts for growth within this sector, making it an attractive investment opportunity for those willing to take on some risk.