The world and the financial markets are looking quite different after Q1 2021 than it did after Q1 2020. Whereas in 2020 the financial markets were bracing themselves for an impending global pandemic set to create uncertainty in the world, 2021 has begun with a much more positive outlook, riding the coattails of one of the greatest bull rushes in the last decade.

Taking advantage of cycles in the market is not always so easy, but thematic investing has given investors a greater ability to target advancing industries. The end of 2020 and beginning of 2021 brought greater capital flow, increased retail-investing, and a rocketing interest in digital assets, three factors positively impacting new developments in financial technology companies and trading platforms. Amongst MVIS thematic products, Financial 2.0 was the top-performing meta theme, driven by the performance of BlueStar E-Brokers and Trading Platforms Index (BEBKR) — its top performing index of Q1 2021.

To capture the digital asset revolution, MVIS debuted MVIS Global Digital Assets Equity Index (MVDAPP), a new product within the Financial 2.0 meta theme. MVDAPP tracks the performance of global companies with at least half their revenues coming from digital asset exchanges, payment gateways, mining operations, software services, equipment and technology or services to the digital assets industry, digital asset infrastructure businesses, or companies facilitating commerce with the use of digital assets. Check out how these indices performed relative to other indices during Q1 2021 in our Quarterly Thematic Index Performance Review.

Quarterly Performance (USD)

Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021
Financials 2.0Financials 2.0Financials 2.0Financials 2.0Financials 2.0

Source: MVIS. The return of Financials 2.0 is the equal weighted returns of the indices within the meta theme. As of 31 March 2021, Financials 2.0 included: BlueStar E-Brokers & Trading Platforms, MVIS Global Digital Assets Equity, BlueStar Fintech.

About the Author:

Steven Braid is a Data and Marketing Analyst at MV Index Solutions. He is responsible for supporting the data, marketing, research, and product services. Prior to working for MVIS, Steven worked as an  equity research analyst for Dane Capital Management, a special situations hedge fund, where he focused on SPACs and other forms of special situation transactions. Prior to his time in Finance, he worked as a professional journalist, publishing for the New York Times, USA Today, and other national periodicals. Steven has a M.S. in Data Analytics & Applied Research from the Baruch College Zicklin School of Business, and a BA in International Political Economy from the University of Michigan.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.