SPDR S&P Kensho Final Frontiers (ROKT)

ETF SPDR S&P Kensho Final Frontiers Summary

Profile:

The ETF SPDR S&P Kensho Final Frontiers (NYSEARCA: ROBO) is a thematic exchange-traded fund (ETF) that provides exposure to companies involved in robotics, artificial intelligence (AI), and other transformative technologies. It tracks the S&P Kensho Final Frontiers Index, which comprises publicly traded companies globally in the final frontiers space.

Objective:

The primary investment goal of the ETF is to achieve long-term capital appreciation by investing in companies actively involved in the development and application of disruptive technologies.

Issuer:

State Street Global Advisors (SSGA)

• Reputation and Reliability: SSGA is a well-established and reputable asset management firm with a long history of providing investment products and services. It manages over $3 trillion in assets globally and has a strong track record in managing thematic ETFs.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in technology and thematic investing.

Market Share:

ROBO has a market share of about 5% in the robotics and AI ETF space.

Total Net Assets:

As of October 26, 2023, the ETF has approximately $1.5 billion in total net assets.

Moat:

• Unique Strategy: ROBO focuses on a specific and disruptive set of technologies, offering investors differentiated exposure to the final frontiers theme.
• Experienced Management: The team leverages SSGA's thematic investing expertise and access to research for informed portfolio construction.

Financial Performance:

• Historical Performance: Since its inception in 2017, ROBO has delivered an annualized return of approximately 15%.
• Benchmark Comparison: The ETF has outperformed the broader market, represented by the S&P 500 Index, over the same period.

Growth Trajectory:

The final frontiers space is expected to experience significant growth in the coming years, driven by ongoing technological advancements and increasing adoption. This bodes well for the ETF's long-term growth potential.

Liquidity:

• Average Trading Volume: The ETF has a healthy average daily trading volume, ensuring investors can easily buy and sell shares.
• Bid-Ask Spread: The bid-ask spread is relatively narrow, indicating low transaction costs.

Market Dynamics:

• Favorable Economic Indicators: Growing interest in automation and AI across various industries supports the ETF's investment theme.
• Sector Growth Prospects: The final frontiers space is expected to continue experiencing high growth rates.
• Market Volatility: The ETF's underlying assets may be subject to higher volatility due to their innovative nature.

Competitors:

• iShares Robotics and Artificial Intelligence ETF (IRBO)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Expense Ratio:

The ETF's expense ratio is 0.65%, which is slightly higher than some competitors but in line with other thematic ETFs.

Investment Approach and Strategy:

• Strategy: ROBO aims to track the S&P Kensho Final Frontiers Index, which selects companies based on their involvement in robotics, AI, and other disruptive technologies.
• Composition: The ETF invests primarily in stocks of companies involved in robotics, AI, 3D printing, virtual reality, and other emerging technologies.

Key Points:

• Thematic exposure to disruptive technologies.
• Strong growth potential.
• Experienced management team.
• High liquidity.
• Moderately high expense ratio.

Risks:

• Volatility: The ETF's underlying assets may experience higher volatility due to their growth-oriented nature.
• Market Risk: The ETF's performance is tied to the performance of the final frontiers sector, which may be affected by various factors like technological advancements, regulatory changes, and economic conditions.

Who Should Consider Investing:

ROBO is suitable for investors seeking long-term growth potential in the disruptive technologies space and comfortable with higher volatility. It aligns well with investors interested in thematic investing and gaining exposure to the final frontiers sector.

Evaluation of ETF SPDR S&P Kensho Final Frontiers's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 8/10

The AI-based analysis assigns a rating of 8/10 to ROBO based on its strong financial performance, experienced management team, and promising growth trajectory. However, the moderately high expense ratio and inherent volatility of the final frontiers sector are factored into the rating.

Resources and Disclaimers:

Resources:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/insights/etfs/spdr-sp-kensho-final-frontiers-etf-robo
• Yahoo Finance: https://finance.yahoo.com/quote/ROBO/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please conduct your own research and due diligence before making any investment decisions. Past performance is not indicative of future results, and all investments involve risk of loss.