Market Overview

PureFunds Gets Techy With Fintech, Health-Tech ETFs

PureFunds Gets Techy With Fintech, Health-Tech ETFs

There are plenty of financial services exchange-traded funds on the market today. The same goes for healthcare ETFs. After all, financial services and healthcare are the S&P 500's second- and third-largest sector weights, respectively.

However, many traditional financial services and healthcare ETFs do not reflect the growing impact technology is having on those sectors. PureFunds, the issuer behind well-known ETFs such as the PureFunds ISE Cyber Security ETF (NYSE: HACK) and the PureFunds ISE Junior Silver ETF (FactorShares Trust (NYSE: SILJ)), changed that Wednesday with the launch of two new ETFs.

2 New Techy ETFs

The new ETFs are the PureFunds Solactive FinTech ETF (NASDAQ: FINQ) and the PureFunds ETFx HealthTech ETF (NASDAQ: IMED).


FINQ, the fintech ETF, tracks the Solactive FinTech Index. Home to 31 stocks, FINQ does not allocate more than 3.9 percent of its weight to any of its holdings. FINQ's top 10 holdings include Square Inc (NYSE: SQ), Fair Isaac Corporation (NYSE: FICO) and LendingClub Corp (NYSE: LC).

“Advances emanating from the technology sector have had a transformative impact on the operation of today’s economy. Consider the unqualified revolutions in sectors such as healthcare, communications, and media, all unleashed by tech-inspired solutions. Yet one industry that is only beginning to leverage the potential of technology is financials, this newfound investment space, aptly named FinTech, growing 75 percent in 2015,” according to PureFunds.

FINQ charges 0.68 percent per year.


IMED breaks from traditional healthcare ETFs by focusing on companies involved in healthcare informatics, medical instruments and medical devices.

IMED holds 60 stocks, just over 55 percent of which are U.S. companies. Japan, Germany and the U.K. are among the new ETF's largest ex-U.S. country allocations. Diagnostic and research providers and health information services combine for 24 percent of IMED's weight, while the new ETF's largest industry allocation is almost 28.3 percent to medical device makers.

“Conventional exposures to healthcare have tended to focus on pharmaceutical research, while ignoring the role of technology in revolutionizing the management and delivery of healthcare. The PureFunds ETFx HealthTech ETF: IMED concentrates on three technology-driven facets of the expanding healthcare field, namely Healthcare Informatics, Medical Instruments and Medical Devices. Together, these market segments aim for a more informed, technology-focused standard of care, coupling improved patient outcomes with service cost compression,” according to PureFunds.

IMED charges 0.75 percent per year.

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