SPDR Kensho New Economies Composite (KOMP)

Overview

The SPDR Kensho New Economies Composite ETF (KOMP) seeks to track the performance of companies poised to benefit from the adoption of new technologies, including artificial intelligence, robotics, and the cloud. It invests in a diversified portfolio of U.S. listed equity securities of companies that are part of the Kensho New Economies Composite Index. The strategy focuses on capturing growth in innovative sectors that are transforming the global economy.

Reputation and Reliability

State Street Global Advisors (SSGA) is a major global investment management firm with a long-standing reputation for reliability and a wide range of ETF offerings. They are one of the largest ETF providers in the world.

Management Expertise

SSGA employs experienced investment professionals who manage their extensive ETF suite. While individual portfolio managers are not always highlighted for specific ETFs, the firm's overall expertise in index-based investing and active management is well-established.

Goal

To provide investors with exposure to companies that are at the forefront of technological innovation and are expected to drive future economic growth.

Investment Approach and Strategy

Strategy: KOMP aims to track the Kensho New Economies Composite Index, which is designed to identify and invest in companies engaged in developing or benefiting from new technologies.

Composition The ETF primarily holds common stocks of companies across various sectors that are involved in disruptive technologies such as AI, robotics, cloud computing, and cybersecurity.

Market Share: As of recent data, KOMP holds a notable position within the technology and innovation-focused ETF segment, though precise market share figures can fluctuate and are often relative to the total assets within its specific niche.

Total Net Assets (AUM): 2600000000

Key Competitors

• ROBO
• BOTZ
• ARKQ
• IGM

Competitive Landscape

The competitive landscape for innovation-focused ETFs is robust, with several players vying for investor capital. KOMP's advantage lies in its broad-based approach to new economies, capturing a wide range of tech disruptors. However, competitors like ROBO and BOTZ offer more specialized thematic focuses (e.g., robotics), which can attract specific investor interests. ARK ETFs (like ARKQ) often employ a more active, thematic strategy with higher fees, contrasting with KOMP's passive index tracking.

Historical Performance: [object Object]

Benchmark Comparison: KOMP generally performs in line with its benchmark index, the Kensho New Economies Composite Index, with minor tracking differences due to fees and rebalancing. Its performance reflects the broader trends in technology and innovation sectors.

Expense Ratio: 0.0046

Average Trading Volume

The ETF exhibits strong liquidity with an average daily trading volume that facilitates ease of entry and exit for investors.

Bid-Ask Spread

The bid-ask spread for KOMP is typically tight, indicating efficient trading and relatively low transaction costs for investors.

Market Environment Factors

The ETF is sensitive to macroeconomic factors such as interest rate changes, inflation, and global economic growth. Specific to its focus, technological advancements, regulatory changes impacting tech industries, and investor sentiment towards growth stocks significantly influence its performance.

Growth Trajectory

The ETF has seen consistent growth in AUM, reflecting investor interest in innovative technologies. Its strategy remains focused on identifying companies within the Kensho New Economies Composite Index, with adjustments made based on index rebalancing and constituent performance.

Competitive Edge

KOMP's competitive edge stems from its comprehensive approach to identifying a wide spectrum of companies driving new economies, going beyond just the largest tech giants. Its underlying index methodology, developed in partnership with Kensho, aims to capture companies early in their growth cycle. This broad diversification within innovative sectors can offer investors a more balanced exposure to the evolving technological landscape, potentially mitigating risks associated with highly concentrated thematic ETFs.

Volatility

KOMP exhibits moderate to high historical volatility, characteristic of technology and growth-oriented ETFs, which can experience significant price swings based on market sentiment and company-specific news.

Market Risk

The ETF is exposed to market risk due to its equity holdings, including systemic risks affecting the stock market. Specific risks include the rapid obsolescence of technology, intense competition within tech sectors, regulatory scrutiny of large tech companies, and potential underperformance of emerging technologies.

Ideal Investor Profile

The ideal investor for KOMP is someone seeking long-term capital appreciation, with a moderate to high risk tolerance, and a belief in the transformative power of new technologies. Investors should have a diversified portfolio and understand the inherent volatility associated with growth-oriented investments.

Market Risk

This ETF is best suited for long-term investors who want to participate in the growth of innovative sectors and are comfortable with the risks associated with emerging technologies. It can also serve as a growth component within a diversified investment portfolio.

The SPDR Kensho New Economies Composite ETF (KOMP) offers investors exposure to companies at the forefront of technological innovation. It tracks an index designed to capture growth in sectors like AI and robotics. While offering diversified exposure to new economies, it carries moderate to high volatility, typical of growth-oriented investments. Its broad approach differentiates it from more specialized tech ETFs, making it suitable for long-term investors with a higher risk tolerance seeking exposure to future economic drivers.

Data Sources:

• State Street Global Advisors (SSGA) Official Website
• Financial Data Providers (e.g., Morningstar, Bloomberg)
• Index Provider (Kensho)

Disclaimers:

This information is for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making investment decisions.