One of the best ways to hunt for oversold fintech stocks to buy is by reviewing the 63 holdings held by the Global X FinTech ETF (NASDAQ:FINX). It tracks the performance of the Indxx Global FinTech Thematic Index.
The methodology page states that the names in the index are companies in developed markets “that are offering technology-driven financial services which are disrupting existing business models in the financial services and banking sectors.”
To be eligible for the index, they must have a $300 million market capitalization, have an average daily volume of $2 million or more over the past six months, and have a free float of at least 10% of the outstanding shares.
The components in the index are capped at a 6% weight. Further, the combined weight of companies exceeding 5% is capped at 40%. The remaining names are capped at 4.5%.
FINX is up 7.8% year-to-date but down 15.7% over the past 52 weeks. That should make the selection process easier.
Lemonade (LMND)
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Lemonade (NYSE:LMND) is a Certified B-Corp that…