Most of those are nearly out of buy range, but if you’re keen on the industry, there’s another way to play the field besides buying individual stocks. ETFMG Prime Mobile Payments (IPAY) is an exchange traded fund that holds a basket of — you guessed it — mobile payments companies.
The $316.7 million fund, which tracks the Prime Mobile Payments Index, owns the above names as well as 34 others in the electronic and digital payments industry. Shares are near an all-time high and are just below a 38.68 buy point. The ETF, which is outpacing the S&P 500 with a year-to-date gain of 10% vs. 2%, will mark its third anniversary in July.
IPAY’s top five holdings as of May 14 — Visa, Mastercard (MA), American Express (AXP), PayPal (PYPL) and Fidelity National Information Services (FIS) — accounted for nearly 30% of assets. WorldPay (WP) and Square made up 4% and 3.5%, respectively, while Green Dot took a 2% weighting.
Top holding Visa is near the top of a buy zone from a 125.54 flat-base entry. Mastercard is nearly out of buy range from an 183.83 flat-base entry. Likewise, Green Dot is almost 5% above a 69.47 buy point of a shallow pattern. Square closed Monday 3% above a 52.60 buy point of a double-bottom base cleared last week. WorldPay is 5% off its March peak and is testing its 10-week moving average.
The ETF’s holdings represent three segments of the mobile payments market: card networks, infrastructure and software providers, and processors and/or solutions companies.
“It is commonly held that consumer spending accounts for approximately two-thirds of U.S. gross domestic product, which in real terms equates to roughly $11.5 trillion,” according to ETFMG Funds’ website. “It is estimated by the Electronic Transaction Association that 70% of these transactions are conducted electronically.”
IPAY carries a 0.80% expense ratio.
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