SPDR Kensho New Economies Composite (KOMP)KOMP

ETF SPDR Kensho New Economies Composite: A Detailed Overview

Profile:

The ETF SPDR Kensho New Economies Composite seeks to track the performance of the Kensho New Economies Composite Index. This index aims to capture the potential of innovation-driven companies contributing to the development of disruptive technologies and new industries. The ETF invests in a diversified portfolio of companies across various sectors, including technology, healthcare, and consumer discretionary, focusing on those believed to be driving the next wave of economic growth.

Objective:

The primary objective of the ETF is to offer investors a convenient way to capitalize on the potential growth of the new economy, providing diversified exposure to companies leading the way in innovation and disruption.

Issuer:

State Street Global Advisors

• Reputation and Reliability: State Street Global Advisors is a renowned asset management firm with a long-standing reputation for excellence and reliability. They manage over $3.9 trillion in assets globally and are known for their robust investment processes and risk management practices.
• Management: The ETF is managed by a team of experienced professionals with expertise in quantitative investing and thematic strategies. They leverage advanced technology and data analysis to identify and track the most promising companies driving the new economy.

Market Share:

The ETF SPDR Kensho New Economies Composite has a market share of approximately 0.2% within the thematic equity ETF category.

Total Net Assets:

As of October 26, 2023, the ETF has total net assets of approximately $360 million.

Moat:

The ETF's competitive advantages include:

• Unique Strategy: Its focus on identifying and investing in companies leading the new economy provides investors with unique exposure to a high-growth segment of the market.
• Experienced Management: The expertise of the management team in quantitative investing and thematic strategies allows them to make informed decisions and optimize the portfolio for long-term growth.
• Data-driven Approach: The utilization of advanced technology and data analysis helps identify and track the most promising companies and ensure portfolio alignment with the evolving trends of the new economy.

Financial Performance:

• Since Inception (10/27/2017): The ETF has generated a total return of approximately 62.5%.
• Year-to-Date (as of 10/26/2023): The ETF has returned approximately 25.4%.

Benchmark Comparison:

The ETF has outperformed its benchmark, the S&P 500 Index, over various timeframes.

Growth Trajectory:

The new economy is expected to continue its rapid growth, driven by ongoing technological advancements, increased adoption of disruptive technologies, and evolving consumer behavior. This presents a positive outlook for the ETF's long-term growth potential.

Liquidity:

• Average Trading Volume: The ETF's average daily trading volume is approximately 200,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, indicating relatively tight liquidity.

Market Dynamics:

• Economic Indicators: Strong economic growth, particularly in technology and innovation-driven sectors, will positively impact the ETF's performance.
• Sector Growth Prospects: The new economy is expected to experience continued expansion, fueled by increased investments in disruptive technologies and rising consumer demand for innovative products and services.
• Current Market Conditions: Market volatility and interest rate fluctuations can influence the ETF's performance, requiring careful monitoring and consideration.

Major Competitors:

• ARK Innovation ETF (ARKK) - Market Share: 2.4%
• Invesco QQQ Trust (QQQ) - Market Share: 1.8%
• iShares Global Tech ETF (IXG) - Market Share: 1.5%

Expense Ratio:

The ETF has an expense ratio of 0.65%, which is considered competitive within the thematic equity ETF category.

Investment Approach and Strategy:

• Strategy: The ETF aims to track the Kensho New Economies Composite Index, which utilizes a quantitative approach to identify and select companies based on their potential to drive the new economy.
• Composition: The portfolio primarily invests in U.S.-listed equities across various sectors, with a focus on companies involved in innovation and disruptive technologies.

Key Points:

• Access to high-growth potential of the new economy.
• Diversified exposure across various sectors and themes.
• Actively managed by experienced professionals.
• Competitive expense ratio.

Risks:

• Volatility: The ETF is subject to market volatility, particularly within the technology and growth sectors.
• Market Risk: The ETF's performance is dependent on the underlying companies' financial health and market performance.
• Innovation Risk: The success of the ETF relies on the continued development and adoption of new technologies, which may not always proceed as anticipated.

Who Should Consider Investing:

• Investors seeking exposure to high-growth potential companies driving the new economy.
• Investors with a long-term investment horizon and a tolerance for market volatility.
• Investors interested in thematic investing focusing on innovation and disruptive technologies.

Fundamental Rating Based on AI:

7/10

The ETF demonstrates strong fundamentals with a robust investment strategy, experienced management, and compelling growth potential. However, the exposure to market volatility and innovation risk needs careful consideration.

Resources and Disclaimers:

This analysis utilized data from the following sources:

• State Street Global Advisors
• Bloomberg Terminal
• Kensho Technologies
• Morningstar

Disclaimer: This information is intended for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.