New York-based financial sector specialist, Keefe Bruyette & Woods Inc., and Nasdaq on Monday announced the launch of an index that aims to precisely track the performance of companies that leverage technology to deliver financial products and services (fintech), KBW Nasdaq Financial Technology Index (KFTX).
They also launched a total return version of the index, KBW Nasdaq Financial Technology Total Return Index.
“Technology is changing the way financial services are both created and delivered to the market, and our launch of the KBW Nasdaq Financial Technology Index reflects the investment community’s growing interest in fintech,” says Fred Cannon, global director of research at KBW, in a statement. “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 index is comprised of 49 fintech companies that are capitalizing on trends such as big data and mobile technology to transform the financial sector. The index will be rebalanced quarterly and its constituents will be updated annually on the third Friday in December.
“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,” adds Dave Gedeon, vice president and head of research & development, Nasdaq Global Indexes.
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