BPAY - AI Analysis

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BlackRock Future Financial and Technology ETF (BPAY)

Rating:60Neutral

Price Target:

$34.00

The BlackRock Future Financial and Technology ETF (BPAY) has a balanced overall rating, reflecting a mix of strong and moderate-performing holdings. PayPal and Robinhood stand out as key contributors, driven by their robust financial performance, strategic initiatives, and positive earnings call sentiment. However, weaker holdings like Capital One Financial and Coinbase, which face challenges such as valuation concerns and profitability issues, may have tempered the fund's rating. A potential risk factor is the ETF's exposure to companies with high valuations, which could be sensitive to market fluctuations.

Positive Factors

Strong Top Holdings

Several key holdings, such as Coinbase, Nu Holdings, and Galaxy Digital, have delivered strong year-to-date performance, supporting the ETF’s overall returns.

Focus on Growth Sectors

The ETF is heavily weighted in financial and technology sectors, which are known for innovation and long-term growth potential.

Global Diversification

While primarily U.S.-focused, the ETF includes exposure to international markets like the UK, Japan, and Switzerland, providing some geographic diversification.

Negative Factors

High Expense Ratio

The ETF charges a relatively high expense ratio compared to many other funds, which can eat into investor returns over time.

Underperforming Holdings

Some top holdings, including PayPal and Global Payments, have lagged in performance this year, potentially dragging down the fund’s overall momentum.

Sector Concentration Risk

Nearly 85% of the ETF is concentrated in financial and technology sectors, making it vulnerable to downturns in these industries.

BPAY vs. SPDR S&P 500 ETF (SPY)

AUM11.23M

RegionGlobal

Expense Ratio0.70%

Beta1.16

IssueriShares

Inception DateAug 16, 2022

Dividend Yield0.47%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,026

30 Day Avg. Volume3,000

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

38.69

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering46

BPAY Summary

The BlackRock Future Financial and Technology ETF (BPAY) focuses on companies in the FinTech sector, which combines finance and technology to create innovative solutions like digital payments, blockchain, and cybersecurity. This ETF includes well-known names like PayPal and Charles Schwab, along with other firms driving change in financial services. Investing in BPAY could be appealing for those looking to tap into the growth potential of cutting-edge financial technologies while gaining exposure to a mix of established companies and emerging players. However, new investors should be aware that this ETF is heavily tied to the FinTech sector, meaning its performance can be significantly impacted by trends and challenges specific to this niche market.

How much will it cost me?The BlackRock Future Financial and Technology ETF (BPAY) has an expense ratio of 0.7%, which means you’ll pay $7 per year for every $1,000 invested. This is higher than the average expense ratio for ETFs because BPAY is actively managed, focusing on a niche market in the FinTech sector that requires specialized research and expertise.

What would affect this ETF?BPAY's focus on the FinTech sector positions it to benefit from growing adoption of digital payment systems, blockchain technology, and cybersecurity solutions, which are becoming increasingly important in the global economy. However, the ETF could face challenges from rising interest rates, regulatory changes targeting financial technology companies, or economic slowdowns that impact consumer spending and innovation in the sector.

BPAY Top 10 Holdings

BPAY is riding the wave of FinTech innovation, with Robinhood and Galaxy Digital leading the charge thanks to their strong recent performance and bullish momentum. Coinbase is also contributing positively, though its high valuation and market volatility remain concerns. On the flip side, PayPal and Block are lagging, weighed down by mixed financial results and declining growth trends. The fund’s focus on financial and technology sectors creates a concentrated bet on digital payments and blockchain, with a global mix of holdings that reflects the rapidly evolving FinTech landscape.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
PYPL	PayPal Holdings	4.17%	$480.62K	$65.20B	-10.92%	78 Outperform
SCHW	Charles Schwab	4.03%	$464.18K	$171.74B	33.07%	70 Outperform
HOOD	Robinhood	3.90%	$450.01K	$128.68B	413.29%	78 Outperform
XYZ	Block	3.89%	$448.21K	$46.64B	4.39%	71 Outperform
GPN	Global Payments	3.81%	$439.88K	$19.22B	-23.34%	71 Outperform
COIN	Coinbase Global	3.53%	$407.44K	$89.57B	64.64%	68 Neutral
COF	Capital One Financial	3.52%	$405.74K	$138.96B	31.07%	58 Neutral
NU	Nu Holdings	3.05%	$352.10K	$77.53B	2.29%	77 Outperform
CRCL	Circle Internet Group, Inc. Class A	2.97%	$343.00K	$2.58B	―	61 Neutral
SE	Sea	2.59%	$298.18K	$92.31B	63.53%	69 Neutral

BPAY Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

32.47

Negative

100DMA

32.41

Negative

200DMA

29.29

Positive

Market Momentum

MACD

-0.30

Positive

RSI

38.09

Neutral

STOCH

32.35

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For BPAY, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 31.97, equal to the 50-day MA of 32.47, and equal to the 200-day MA of 29.29, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 32.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BPAY.

BPAY Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
BPAY	―	―	$11.23M	0.70%	60 Neutral
AIFD	―	―	$87.06M	0.75%	73 Outperform
YNOT	―	―	$62.35M	0.75%	77 Outperform
IQM	―	―	$56.31M	0.50%	73 Outperform
TEKY	―	―	$52.72M	0.50%	69 Neutral
FDFF	―	―	$48.90M	0.50%	66 Neutral

Performance Comparison

BPAY

BlackRock Future Financial and Technology ETF

30.64

5.69

22.81%

AIFD

TCW Artificial Intelligence ETF

―

YNOT

Horizon Digital Frontier ETF

―

IQM

Franklin Intelligent Machines ETF

―

TEKY

Lazard Next Gen Technologies ETF

―

FDFF

Fidelity Disruptive Finance ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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