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Why I am Building a Fintech Stock Index

Every investor has a niche. Even if they choose not to define it.

Without a niche, investing is a tough sport. That’s why we at Golden Door focus on financial software for several core reasons. First, we are in the investment industry so many fintech investments are adjacent to money managers.

Fintech means financial technology. These are companies that use tech to make financial services better, faster, or cheaper. Think of apps for trading, online banking, or even cryptocurrency exchanges.

But with so many fintech companies out there, how do you keep track of the best ones? That’s where a fintech stock index watchlist comes in.

Why should you track these individual names? Because each company is different, even if they’re all in fintech. For example, Robinhood might do well if more young people start trading, but Coinbase could struggle if cryptocurrency prices drop.

By watching each company closely, you can spot trends. Maybe S&P Global is growing because more businesses need their data, or Nasdaq is booming because more companies are listing on their exchange. If you don’t track them one by one, you might miss these opportunities or risks. Knowing what’s happening with each stock helps you decide when to buy or sell.

Here’s how we built the Fintech index

Now, let’s talk about a watchlist index. A watchlist is like a list of stocks you’re keeping an eye on. When you turn it into an index, you group them together to see how the whole fintech sector is doing. This helps you see the big picture while still tracking individual names.

How does this improve returns? First, it saves you time. Instead of checking every stock every day, you can look at your index to see overall trends. Second, it helps you make smarter choices. If you notice that exchanges like CME and ICE are doing better than brokers like SCHW, you can put more money into exchanges.

Third, it reduces risk. By spreading your money across different types of fintech companies (i.e. brokers, exchanges, data firms, and operations), you’re not putting all your eggs in one basket.

To build your watchlist, start with the list you have. Add these stocks to a spreadsheet or use a free app like Google Finance to track them. Check their prices weekly and watch for news about each company.

Over time, you’ll see patterns and learn which stocks are the strongest. A fintech stock index watchlist is a simple tool that can help you stay organized and spot opportunities.

My Current Portfolio Watchlist

Below is a list of stocks in the Golden Door index. At the moment, it covers a wide range of wealth tech and invest tech stocks. The primary reason is we use these technologies and even build financial software that is adjacent to them. This level of insight gives us an edge when investing because we are primary customers.