5 Best Financial and Fintech ETFs To Buy

1. SPDR S&P Capital Markets ETF (NYSE:KCE)

5-Year Share Price Performance as of March 22: 103.87%

Ranking 1st on our list of the best financial ETFs is SPDR S&P Capital Markets ETF (NYSE:KCE). The ETF aims to match the total return performance of the S&P Capital Markets Select Industry Index before fees and expenses. SPDR S&P Capital Markets ETF (NYSE:KCE) provides exposure to the capital markets segment of the S&P Total Market Index, including sub-industries such as Asset Management & Custody Banks, Diversified Capital Markets, Financial Exchanges & Data, and Investment Banking & Brokerage. As of March 22, 2024, the fund owns $319.91 million in assets under management, along with a gross expense ratio of 0.35%. Its portfolio consists of 63 stocks. 

Robinhood Markets, Inc. (NASDAQ:HOOD) is the largest holding of SPDR S&P Capital Markets ETF (NYSE:KCE). On March 14, Bernstein initiated coverage of Robinhood Markets, Inc. (NASDAQ:HOOD) with an Outperform rating. Bernstein anticipates significant gains in the company’s crypto-related revenues due to an expected “monster” crypto cycle over the next few years. Robinhood reported increased trading volumes across all asset classes in February, with crypto trading volume up 10% month-over-month to $6.5 billion. Bernstein forecasts the total crypto market value to reach $7.5 trillion by 2025, potentially increasing Robinhood’s crypto revenue ninefold.

According to Insider Monkey’s fourth quarter database, 21 hedge funds were long Robinhood Markets, Inc. (NASDAQ:HOOD), compared to 28 funds in the previous quarter. 

Here is what Claret Asset Management has to say about Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2021 investor letter:

“Robinhood went public at $38 a share at the end of July of this year. After a one day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 13 Best Dividend-Paying Stocks Under $15 and 12 Best Data Center Stocks To Buy According to Analysts.