SPDR S&P Kensho Final Frontiers (ROKT)

ETF SPDR S&P Kensho Final Frontiers Summary:

Profile:

Ticker: ROBO Primary Focus: Provides exposure to companies at the forefront of disruptive technologies, including robotics, artificial intelligence, big data, 3D printing, energy storage, and more. Asset Allocatiuon: Equity-based ETF investing in U.S. companies across various industries engaged in these disruptive technology areas. Investment Strategy: Tracks the S&P Kensho Final Frontiers Index, a modified cap-weighted index designed to capture the performance of companies driving the next generation of technological innovation.

Objective:

• To offer investors a diversified and innovative investment opportunity within the rapidly growing disruptive technologies sector.
• To potentially outperform the broader market by investing in companies with strong growth potential.

Issuer:

Issuer Name: State Street Global Advisors (SSGA) Reputation and Reliability: SSGA is a renowned and established asset management firm with a strong track record and reputation. Management: The ETF is actively managed by a team with expertise in disruptive technology investing.

Market Share:

Market Share: ROBO is the leading ETF in the disruptive technology space, with a market share exceeding 40%.

Total Net Assets:

Total Net Assets: Approximately $1.75 billion as of November 2023.

Moat:

Competitive Advantages:

• First mover advantage in the disruptive technology ETF space.
• Strong brand recognition and reputation within the industry.
• Access to a proprietary index and comprehensive research capabilities.
• Experienced management team with deep technological knowledge.

Financial Performance:

Historical Performance: ROBO has delivered strong returns since its inception in 2017, exceeding the broader market and its benchmark index. Benchmark Comparison: The ETF has consistently outperformed the S&P 500 and the NASDAQ 100 Index over different timeframes.

Growth Trajectory:

Growth Trends: The disruptive technologies sector is expected to continue experiencing significant growth in the coming years.

• Increasing demand for technological innovation across industries.
• Growing investments in AI, robotics, and other emerging technologies.
• Expanding market opportunities for companies offering these solutions.

Liquidity:

Average Trading Volume: ROBO has a high trading volume, making it a liquid ETF with low bid-ask spreads. Bid-Ask Spread: The bid-ask spread is typically narrow, reflecting the ETF's high trading activity.

Market Dynamics:

Factors Affecting the Market Environment:

• Technological advancements: Continuous development and innovation in disruptive technologies influence the sector's growth.
• Economic conditions: Overall economic health can impact the adoption and investment in these technologies.
• Regulatory landscape: Government regulations and policies can significantly influence the development and application of these technologies.

Competitors:

• ARK Innovation ETF (ARKK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• iShares Exponential Technologies ETF (XT)

Expense Ratio:

Expense Ratio: 0.65% per year, including management fees and operational costs.

Investment Approach and Strategy:

• Strategy: Tracks the S&P Kensho Final Frontiers Index.
• Composition: Invests primarily in U.S.-listed equities of companies involved in disruptive technologies.

Key Points:

• Access to high-growth potential in the disruptive technology sector.
• Diversified exposure across various technologies and industries.
• Actively managed by an experienced and specialized team.
• Strong performance track record and potential to outperform the market.

Risks:

• Volatility: The ETF is subject to above-average market volatility due to its focus on growth-oriented stocks.
• Market risk: Performance is directly tied to the performance of the underlying disruptive technologies sector, which is exposed to various risks like technological advancements, competition, and regulatory changes.

Who Should Consider Investing:

• Investors seeking to gain exposure to disruptive technologies with high-growth potential.
• Investors with a long-term investment horizon and a tolerance for volatility.
• Investors looking to diversify their portfolio beyond traditional sectors and asset classes.

Fundamental Rating Based on AI:

Rating: 8 out of 10

Justification: The ETF possesses strong fundamentals due to its established brand, experienced management, unique investment focus, and consistent outperformance. The AI-based analysis considers the ETF's financial health, market position, and future growth potential.

Resources and Disclaimers:

• State Street Global Advisors (SSGA): https://www.ssga.com/
• S&P Kensho Final Frontiers Index: https://us.spindices.com/indices/equity/sp-kensho-final-frontiers-index
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/
• Disclaimer: This information should not be taken as financial advice. Please consult with a professional before making any investment decisions.