CrowdBureau has partnered with Amplify to create a new Exchange Traded Fund (ETF) that targets the Fintech sectors of peer to peer lending (marketplace) and crowdfunding. The LEND ETF corresponds to the CrowdBureau Peer-to-Peer (P2P) Lending & Equity Crowdfunding Index (the Index). The Index is comprised of companies that:
- operate the platforms that facilitate P2P lending and investment-based crowdfunding
- provide the technology & software that enable the operation of these platforms.
Crowdfunding is an umbrella term generally referring to online capital formation through the solicitation of individual investments from a number of persons or institutions that provide money to businesses for debt, equity, or other securities.
Amplify is a specialty ETF provider. CrowdBureau is the creation of Kim Wales, a long time Fintech activist and supporter of securities crowdfunding.
Crowdfund Insider reached out to Wales for additional information on the new ETF. We asked Wales, about the make-up of the LEND ETF. She said the ETF tracks the CrowdBureau P2P Lending and Equity Crowdfunding Index. The index currently (as of 3/22/2019) consists of 35 publicly listed firms that encapsulate the peer-to-peer lending and crowdfunding ecosystem.
The CrowdBureau P2P Lending and Equity Crowdfunding Index contrasts with currently offered broader based FinTech benchmarks, each of which consists of approximately 50+ firms, she explained.
“There are four segments that make up the ecosystem, (1) peer-to-peer lending and equity crowdfunding platforms represents 80% of the index weight; (2) Technology and Software Solution providers to the peer-to-peer lending market – represents 14% of the index; (3) financial institutions with a dedicated P2P lending platform represents (1%) and social networking platforms represents (5%) of the Index weight,” said Wales.
We asked how the new ETF has performed recognizing it is quite new. Wales pointed to the P2P Lending Index that, since inception, has delivered -27.7%, but since the lowest value has bounced back substantial by +56.7%. Year-to-date the index has done well delivering an increase of +41.13%.
Wales added that CrowdBureau expects to design a family of Indices in the future to be used as the underlying index for financial products such as exchange-traded funds and managed account platforms.
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