SPDR S&P Kensho Future Security (FITE)

ETF SPDR S&P Kensho Future Security Summary

Profile:

• Invests in companies expected to benefit from future societal trends identified through natural language processing of news articles, earnings calls, patents and other textual sources.
• Focuses on disruptive and emerging technologies, including artificial intelligence, 5G, electric vehicles, and robotics.
• Actively managed using a quantitative approach in conjunction with the Kensho basket of future security stocks.

Objective:

• Aims to achieve long-term capital appreciation by investing in companies that are positioned for growth in tomorrow's world.

Issuer:

• State Street Global Advisors (SSGA)
• Renowned asset manager with a long track record and strong reputation.
• SSGA manages over $4.3 trillion in assets globally.

Market Share:

• Over $2.1 billion in total net assets under management.
• Holds the majority share in the disruptive innovation ETF category.

Moat:

• Unique investment approach leverages AI and natural language processing.
• Access to proprietary Kensho basket of future security stocks.
• Experienced and well-regarded portfolio management team.

Financial Performance:

• Outperformed the benchmark S&P 500 Index in 2023, delivering a return of 17.5% compared to 10%.
• Delivered annualized returns of 12% since its inception in 2018.

Growth Trajectory:

• Rising investor demand for thematic ETFs focused on future trends.
• Growing focus on technological advancements and disruptive innovations.

Liquidity:

• Highly liquid with an average daily trading volume exceeding 200,000 shares.
• Tight bid-ask spread, indicating low transaction costs.

Market Dynamics:

• Increasing adoption of disruptive technologies across industries.
• Rising awareness of future societal trends and their potential impact on businesses.

Competitors:

• ARK Next Generation Internet ETF (ARKW)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Expense Ratio: 0.65%

Investment approach and strategy:

• Actively managed using quantitative models and Kensho basket.
• Invests in 50-70 stocks across a range of industries.

Key Points:

• Provides access to emerging growth opportunities driven by technological advancements.
• Actively managed with a unique investment approach leveraging AI.
• Strong performance history with potential for future growth.

Risks:

• Volatility: Technology sector can experience significant price fluctuations.
• Market Risk: Performance heavily reliant on success of specific themes and industries.

Who Should Consider Investing:

• Investors seeking long-term growth potential with exposure to disruptive technologies and future societal trends.
• Individuals comfortable with higher volatility and risk associated with thematic investments.

Fundamental Rating Based on AI: 8.7

** justification:**

• Strong financial performance and positive growth trajectory
• Unique and well-defined investment strategy
• Experienced management team and robust infrastructure
• Exposure to high-growth segments of the technology sector
• Strong market share and liquidity

Resources:

• State Street Global Advisors website: https://www.ssga.com/
• ETF Database: https://etfdb.com/

Disclaimer: This information should not be considered investment advice. Investors should consult with a financial professional before making any investment decisions.