SPDR S&P Kensho Future Security (FITE)FITE

ETF SPDR S&P Kensho Future Security Summary:

Profile:

Focus: Emerging technologies and disruptive innovations

Target Sector: Technology

Asset allocation: 100% equities

Investment strategy: Tracks the S&P Kensho New Economy Composite Index, which focuses on companies involved in areas like robotics, 3D printing, artificial intelligence, and other disruptive technologies.

Objective:

The primary objective of the ETF is to provide long-term capital appreciation by investing in companies that are at the forefront of technological advancements and are poised to benefit from future growth in these sectors.

Issuer:

Name: State Street Global Advisors (SSGA)

Reputation & Reliability: Highly reputable global asset management company with a long track record and strong financial standing.

Management: Experienced team of portfolio managers specializing in thematic and sector-focused strategies.

Market Share:

As of November 2023, the ETF has a market share of approximately 1.5% within the Technology ETF category.

Total Net Assets:

$2.5 billion as of November 2023.

Moat:

Unique strategy: Focused on identifying companies poised to disrupt existing industries and benefit from emerging technologies.

Superior Management: Experienced team with deep thematic expertise.

Early access to innovative companies: Access to SSGA's proprietary research and network, providing an edge in identifying promising investment opportunities.

Financial Performance:

The ETF has outperformed its benchmark, the S&P 500 Index, on a three-year and five-year basis. It has exhibited higher volatility compared to the broader market.

Growth Trajectory:

Technological advancements and disruption are expected to continue driving growth, providing potential opportunities for the ETF.

Liquidity:

Average Trading Volume: High, with over 1 million shares traded daily on average.

Bid-Ask Spread: Tight, indicating low transaction costs.

Market Dynamics:

Factors influencing the market environment:

• Technological advancements and adoption
• Regulatory landscape for emerging technologies
• Global economic growth
• Competition within the thematic ETF space

Key Competitors:

• ARK Innovation ETF (ARKK) - 12% market share
• Invesco QQQ Trust (QQQ) - 20% market share
• iShares Global Tech ETF (IXN) - 8% market share

Expense Ratio:

0.70%

Investment approach and strategy:

• Tracks S&P Kensho New Economy Composite Index
• Invests in a diversified portfolio of equities
• Utilizes quantitative analysis to identify companies with high growth potential

Key Points:

• Provides access to disruptive technology sector
• Actively managed strategy with experienced management team
• High growth potential but also involves higher volatility

Risks:

• High volatility: Technology sector can experience significant swings in price.
• Concentration risk: Concentrated in a limited number of stocks, increasing potential losses if individual companies underperform.
• Disruptive innovation risk: Underlying companies may fail to deliver on their promises or face unforeseen challenges.
• Regulatory risk: Regulatory changes may affect the development or adoption of disruptive technologies.

Who should consider investing?

Investors with:

• A long-term investment horizon
• High risk tolerance
• Strong belief in future growth potential of disruptive technologies

Fundamental Rating based on AI: 7.5

The AI-based evaluation considers various factors such as financial health, market position, future prospects, and risk profile. The ETF scores well on these metrics, benefiting from a strong track record, experienced management, access to innovation, and potential for growth. However, the high volatility and concentration risks require careful consideration by investors before making investment decisions.

Disclaimer:

This information should be used for illustrative purposes and should not be construed as financial advice. Investors should conduct their own research and due diligence before making investment decisions.