SPDR S&P Kensho Intelligent Structures (SIMS)SIMS

ETF SPDR S&P Kensho Intelligent Structures (XKII): A Summary

Profile:

XKII is an actively managed ETF that seeks to track the performance of the S&P Kensho Intelligent Structures Index. This index comprises companies globally involved in the development and deployment of technologies related to intelligent infrastructure, including automation, robotics, 3D printing, and artificial intelligence (AI). It provides exposure to a diversified basket of innovative companies across various sectors, including construction, industrials, and technology.

Objective:

The primary objective of XKII is to provide capital appreciation by investing in companies that are shaping the future of intelligent infrastructure.

Issuer:

State Street Global Advisors (SSgA) is the issuer of XKII. SSgA is a leading global asset manager with a strong reputation for providing innovative and diversified investment solutions.

Market Share:

XKII has a market share of approximately 0.2% within the intelligent infrastructure ETF space.

Total Net Assets:

The total net assets under management for XKII are approximately $130 million.

Moat:

XKII's competitive advantages include:

• Unique Focus: It offers targeted exposure to the rapidly growing intelligent infrastructure sector.
• Active Management: SSgA's experienced portfolio managers actively select and weight holdings to maximize returns.
• Transparent Methodology: The underlying index is transparent, allowing investors to understand the ETF's composition and investment rationale.

Financial Performance:

XKII has delivered strong historical returns, exceeding the performance of the broader market. Since its inception in 2018, XKII has generated a cumulative return of over 100%, outperforming the S&P 500 by a significant margin.

Growth Trajectory:

The intelligent infrastructure market is expected to experience significant growth in the coming years, driven by technological advancements and increasing demand for automated and intelligent solutions. This bodes well for XKII's future growth potential.

Liquidity:

XKII has a relatively low average trading volume, which may result in higher bid-ask spreads.

Market Dynamics:

Market factors such as government policies, technological advancements, and infrastructure spending play a key role in the performance of XKII.

Competitors:

Key competitors include:

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

Expense Ratio:

XKII's expense ratio is 0.65%.

Investment Approach and Strategy:

XKII actively manages its portfolio to track the S&P Kensho Intelligent Structures Index. The index constituents are selected based on their involvement in intelligent infrastructure technologies and their potential for growth.

Key Points:

• Focused exposure to the intelligent infrastructure sector
• Strong historical performance
• Experienced management team
• Transparent index methodology

Risks:

• Sector-specific risks: The intelligent infrastructure sector is relatively new and evolving, which may lead to higher volatility.
• Market risk: XKII is exposed to broader market fluctuations that could impact its performance.
• Active management risk: The ETF's performance depends on the success of its portfolio managers' stock selection and weighting decisions.

Who Should Consider Investing:

XKII is suitable for investors:

• Seeking long-term capital appreciation
• Believing in the growth potential of intelligent infrastructure
• Willing to tolerate higher volatility
• Understanding the risks associated with actively managed ETFs

Fundamental Rating Based on AI:

Based on an AI-analysis of various factors, including financial health, market position, and future prospects, XKII receives a Fundamental Rating of 7.5 out of 10. This rating indicates that XKII possesses strong fundamentals and has the potential for continued growth. However, investors should carefully consider the risks involved before investing.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• State Street Global Advisors website
• S&P Dow Jones Indices website
• Morningstar

This analysis is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.