Givers or Receivers? Return and volatility spillovers between Fintech and the Traditional Financial Industry

• We explore the spillovers effects between a Fintech and the traditional financial ETFs. • Using Diebold-Yilmaz model examines the effect of return and volatility spillovers. • The total return and volatility spillover index are highly noncyclic. • The Fintech ETF is the net receiver. • The bank, broker and dealer, and financial service ETFs are net Givers. We investigate the return and volatility spillovers between a Fintech ETF and the ETFs of the traditional financial industry with an empirical network model. We find that the traditional financial ETFs are still the main givers, and the Fintech ETF is the net receiver. The Fintech ETF does not lead to greater volatility and financial instability in most of the traditional financial sectors. The information transmission between these ETFs is high, especially during the period of US-China trade friction. Our results provide a full understanding of the effect of changes in information transmission between Fintech and the traditional financial industry.