Amplify Digital Payments ETF: There Are Many Reasons To Look Elsewhere

Crimson And Gold Research 331 Followers Follow Summary The Amplify Digital Payments ETF targets the digital payments sector but has significantly underperformed the S&P 500 over the past five years. Despite recent momentum, IPAY has posted losses in total returns for four of the last six years. IPAY's top holdings include PayPal, Mastercard, and Visa, with heavy concentration in transaction and payment processing services. Given mature industry dynamics and risk profile, I remain on the sidelines and prefer other investment options over IPAY. MoMo Productions/DigitalVision via Getty Images The Amplify Digital Payments ETF ( IPAY ) appears to be zeroed in on an industry that should be thriving. As the push to go cashless gains momentum, many of the stocks that are held by the This article was written by Crimson And Gold Research 331 Followers Follow I have been involved in the financial world for over 25 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks come from stocks that are less-widely followed by the average investor or from stocks that may not accurately reflect the opportunities that currently exist in their markets. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.