Nubank just entered the ETF Market 💸🟣; Unicorns reignite IPO plans as market sentiment improves 🔔; Kraken’s European expansion 🇪🇺
FinTech is Eating the World, 29 September
Hey Everyone,
TGIF! It was another BIG week in FinTech and we’re finishing it off with a bang 💣 Today we’re looking at Nubank which just entered the ETF Market (why it’s a strong move + a deeper dive into Brazil’s FinTech gem), unicorns reigniting IPO plans (market sentiment is improving + an invaluable resource for anyone planning an IPO), and Kraken’s European expansion (more competition for Coinbase?). Let’s jump straight into the interesting stuff 🌶
Nubank just entered the ETF Market 💸🟣
The news 🗞️ Latin American FinTech giant Nubank NU 0.00%↑ has entered the exchange-traded fund (ETF) market with the launch of two ETFs focused on dividend distribution.
This is yet another great move by NU to further diversify its product offerings.
Let’s take a look.
More on this 👉 These ETFs are based on a new index, the Ibovespa Smart Dividendos, derived from the Brazilian Ibovespa index.
The new benchmark index, Ibovespa Smart Dividendos, will include 21 companies and be rebalanced every four months, with criteria such as dividend yields, consistency, and lower dividend fluctuation used to weigh a stock's importance in the index.
Nubank's two ETFs, Ibov Smart Dividendos and Nu Renda Ibov Smart Dividendos will track this new benchmark. The key difference between them lies in how dividends are utilized, with one reinvesting dividends in the ETF itself and the other making monthly dividend payments to shareholders.
✈️ THE TAKEAWAY
Why this matters? 🤔 At the core, Nubank going into ETFs is all about diversifying its product offerings and attracting both existing customers and other investors. For now, they are going to do this through the Brazilian stock exchange, B3, but the FinTech giant has plans to introduce additional ETFs in the future, starting with equity ETFs. Given how sticky and savvy NU’s customers are (all 85 million of them!), I’m pretty sure this is going to be a huge success for Brazil’s FinTech gem, only further strengthening their bottom line. Remember - Nubank is a neobank like no other for a reason 😎
ICYMI: analysis of NU’s latest performance & why you should be excited + some bonus reads on other LatAm FinTech you cannot ignore:
