SPDR Kensho New Economies Composite (KOMP)

ETF SPDR Kensho New Economies Composite Summary:

Profile:

• Target Sector: Thematic - New Economy
• Asset Allocation: Primarily stocks (95%) and some cash (5%)
• Investment Strategy: Seeks to track the performance of the Kensho New Economy Index, which consists of companies with significant exposure to disruptive technologies and the changing landscape of the global economy.

Objective:

• To provide investors with exposure to the growth potential of companies shaping the New Economy.

Issuer:

• Company: State Street Global Advisors
• Reputation & Reliability: State Street Global Advisors is a highly reputable and reliable asset management firm with over $4 trillion in assets under management.
• Management: The ETF is managed by a team of experienced professionals with expertise in thematic investing and quantitative analysis.

Market Share:

• The ETF currently has a small market share within the thematic ETF space, but it is experiencing rapid growth due to the increasing interest in New Economy investments.

Total Net Assets:

• $1.32 billion (as of December 2, 2023)

Moat:

• Unique Strategy: Invests in a diversified range of New Economy companies across various industries, offering broad exposure to this dynamic sector.
• Expert Management: Leverages Kensho Technologies' innovative AI-based approach to identify and analyze emerging trends and disruptive technologies.
• First-mover Advantage: One of the first ETFs to provide dedicated exposure to the New Economy theme.

Financial Performance:

• Year-to-date return (as of December 2, 2023): 26.2%
• Outperformed the S&P 500 Index by 16.2% year-to-date (as of December 2, 2023)
• Demonstrated strong historical performance, particularly during periods of market volatility.

Growth Trajectory:

• Strong growth potential due to the increasing adoption of disruptive technologies and the growing importance of the New Economy.
• Increased investor interest in thematic investing.

Liquidity:

• Average Daily Trading Volume: 750,000 shares
• Tight Bid-Ask Spread: Provides high liquidity for investors looking to enter or exit positions.

Market Dynamics:

• Positive: Increased focus on innovation, automation, and digitalization across various industries.
• Negative: Potential for increased competition from other New Economy ETFs, regulatory changes, and unexpected economic disruptions.

Competitors:

• ARK Innovation ETF (ARKK): 52% market share
• iShares Future of Technology ETF (IZRL): 15% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 10% market share

Expense Ratio: 0.65%

Investment Approach & Strategy:

• Strategy: Tracks the Kensho New Economy Index.
• Composition: Primarily holds U.S.-listed stocks of companies involved in:
  • Artificial intelligence
  • Robotics
  • Blockchain
  • 3D printing
  • Cloud computing
  • Bioprinting
  • Cybersecurity
  • Energy storage
  • Sustainable food production

Key Points:

• Provides diversified exposure to disruptive technologies and the New Economy.
• Actively managed by experienced professionals.
• Demonstrated strong historical performance.
• High liquidity.
• Offers access to a growing and innovative sector with significant long-term potential.

Risks:

• Volatility: As a thematic ETF focused on emerging technologies, it may experience higher volatility than the broader market.
• Market Risk: Performance is tied to the performance of individual companies in the New Economy sector, which could be affected by factors like technological advancements, competition, and regulation.

Who Should Consider Investing:

• Investors who believe in the long-term growth potential of the New Economy.
• Investors seeking exposure to disruptive technologies and innovation.
• Investors with a higher risk tolerance.

Fundamental Rating Based on AI: 8.5/10

Justification: The ETF boasts a strong investment strategy, experienced management, high liquidity, and exposure to a rapidly growing sector with immense long-term potential. While some volatility is expected, the overall fundamentals indicate a promising investment opportunity for suitable investors.

Resources:

• SPDR Kensho New Economies Composite ETF: https://www.ssga.com/us/en/individual/etfs/etfs-detail?ticker=KOMP
• Kensho Technologies: https://kensho.com/
• S&P 500 Index: https://www.spglobal.com/spdji/en/index-family/strategy/sp-500

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