New Listing

LGIM launches Europe’s first digital payments ETF

PDAY tracks the Solactive Digital Payments index

Jamie Gordon

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Legal & General Investment Management (LGIM) has launched a digital payments ETF targeting the accelerated adoption of fintech services during the pandemic. 

The L&G Digital Payments UCITS ETF (PDAY) is listed on the London Stock Exchange, Deutsche Boerse and Borsa Italiana with a total expense ratio (TER) of 0.49%. 

Tracking the Solactive Digital Payments index, PDAY offers exposure to the cashless economy theme by investing in payment and card issuers, payment gateways and processors, payment technology providers and card-less payment service providers. 

To be eligible for inclusion in the ETF, a company must have a minimum market cap of $200m and a three-month average trading volume of $1m.

PDAY uses research and consultancy from Payments Cards & Mobile to sift through 150 companies in the digital payments value chain. 

LGIM also noted PDAY’s business involvement is supportive of the UN’s Sustainable Development Goals, with growth of industry, innovation and economies buoyed by the expansion of digital payments infrastructure.

Howie Li (pictured), head of ETFs at LGIM, commented: “The digital payments revolution offers significant growth potential, underpinned by secular, long-term dynamics including the global shift to e-commerce, greater adoption of smartphones in emerging markets and developing safe, secure online payments.

James Crossley, head of UK retail sales at LGIM, added: “We are seeing sustained demand from investors for targeted exposure to the long-term, structural trends that are changing our world.”

LGIM has been making a big push in thematic ETFs space this year. After launching Europe's first hydrogen ETF in February, it unveiled a global equity fund based on ETFs targeting eight investment themes in April.

The latest launch takes the firm's thematic ETF range to 11:

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