SPDR S&P Kensho Smart Mobility (HAIL)

Overview of ETF SPDR S&P Kensho Smart Mobility (KARS)

Profile

Target Sector: Smart Mobility, including companies involved in disruptive transportation technologies such as autonomous vehicles, electric vehicles, connected car solutions, and mobility-as-a-service (MaaS).

Asset Allocation: Primarily invests in U.S.-listed equities of companies within the smart mobility sector.

Investment Strategy: Tracks the S&P Kensho Smart Mobility Index, which uses a proprietary methodology to identify and select companies with exposure to the smart mobility theme.

Objective

KARS aims to provide investors with exposure to the long-term growth potential of the smart mobility sector.

Issuer

Company: State Street Global Advisors (SSGA)

Reputation and Reliability: SSGA is a leading asset management firm with a long-standing reputation for excellence and reliability. It manages over $4 trillion in assets globally.

Management: The ETF is managed by a team of experienced investment professionals with expertise in the smart mobility sector.

Market Share

KARS is the largest smart mobility ETF in the market, with approximately 46% market share.

Total Net Assets

As of November 3, 2023, KARS has approximately $1.2 billion in total net assets.

Moat

Unique Strategy: KARS offers a focused approach to the smart mobility theme, leveraging Kensho's advanced technology and data analytics capabilities.

Superior Management: SSGA's experience and expertise in the ETF industry provide a strong foundation for successful management.

Financial Performance

Historical Performance: Since its inception in 2018, KARS has generated a cumulative return of over 50%.

Benchmark Comparison: KARS has outperformed the S&P 500 Index by a significant margin over various time periods.

Growth Trajectory

The smart mobility sector is expected to experience significant growth in the coming years, driven by factors such as increasing urbanization, technological advancements, and environmental concerns.

Liquidity

Average Trading Volume: KARS has a high average trading volume, ensuring easy entry and exit for investors.

Bid-Ask Spread: The bid-ask spread is relatively low, indicating low transaction costs.

Market Dynamics

Positive Factors: Rising demand for smart mobility solutions, government support for clean energy initiatives, and technological breakthroughs.

Negative Factors: Economic uncertainty, competition from established players, and regulatory challenges.

Competitors

• iShares Self-Driving EV & Tech ETF (IDRV): 35% market share
• Global X Autonomous & Electric Vehicles ETF (DRIV): 15% market share
• Invesco Autonomous & Electric Vehicles ETF (AIRO): 5% market share

Expense Ratio

The expense ratio for KARS is 0.65%.

Investment Approach and Strategy

Strategy: Tracks the S&P Kensho Smart Mobility Index, which uses a quantitative approach to select companies based on their exposure to the smart mobility theme.

Composition: Primarily invests in U.S.-listed equities of companies across various sub-sectors within smart mobility, including autonomous vehicles, electric vehicles, connected car solutions, and MaaS.

Key Points

• Focused exposure to the high-growth smart mobility sector.
• Strong track record of outperformance compared to the benchmark.
• High liquidity and low transaction costs.
• Experienced management team and reputable issuer.

Risks

• Volatility: The smart mobility sector is relatively young and susceptible to higher volatility than broader market indices.
• Market Risk: The performance of KARS is directly linked to the performance of companies within the smart mobility sector.
• Concentration Risk: The ETF invests in a limited number of companies, increasing its exposure to individual stock risk.

Who Should Consider Investing?

KARS is suitable for investors seeking:

• Long-term growth potential: Exposure to the rapidly growing smart mobility sector.
• Thematic investing: Focused investment in a specific industry theme.
• Diversification: Adding an alternative investment to their portfolio.

Fundamental Rating Based on AI

Rating: 8.5 out of 10

Justification: KARS exhibits strong fundamentals, including a focused investment strategy, experienced management, high liquidity, and outperformance relative to the benchmark. However, investors should carefully consider the associated volatility and market risks before investing.

Resources and Disclaimers

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/etf-spdr-sp-kensho-smart-mobility-etf
• S&P Dow Jones Indices: https://www.spglobal.com/spdji/en/indices/equity/sp-kensho-smart-mobility-index

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.