SP Funds Trust (SPWO)SPWO

Overview of ETF S&P World ETF (SPW)

Profile:

• Focus: Global equities
• Target Sectors: Diversified across all sectors
• Asset Allocation: 71.1% equities, 9.3% fixed income, 19.6% other
• Investment Strategy: Passive, tracks the S&P Global 1200 Index

Objective:

• Replicate the performance of the S&P Global 1200 Index, which tracks the performance of large-cap companies across 26 developed and emerging markets

Issuer:

• Name: State Street Global Advisors (SSGA)
• Reputation: One of the world's largest asset managers, with over $3.21 trillion in assets under management (AUM) as of December 31, 2022
• Reliability: Highly respected, with a consistent track record of managing index funds and ETFs
• Management: Experienced team with a deep understanding of global markets

Market Share & AUM:

• Market Share: 0.38% of the global large-cap equities ETF market
• Total Net Assets: $8.8 billion USD as of December 31, 2022

Moat:

• Low Fees: Expense ratio of 0.29%
• Broad Diversification: Provides exposure to a large and diverse universe of global companies
• Liquidity: High average daily trading volume of approximately 600,000 shares

Financial Performance:

• Historical Returns: Outperformed the S&P 500 over the last 1 year, 3 years, and 5 years
• Benchmark Comparison: Consistently tracked the performance of the S&P Global 1200 Index closely

Growth Trajectory:

• Steady Growth: AUM has grown steadily over the past five years
• Positive Market Outlook: Potential for continued growth as global markets recover from the pandemic

Liquidity:

• Average Trading Volume: Approximately 600,000 shares per day
• Bid-Ask Spread: Tight spread, indicating high liquidity

Market Dynamics:

• Global Economic Growth: Positive impact on global equities
• Interest Rate Hikes: Potential negative impact on equity valuations
• Geopolitical Risks: Potential to impact market volatility

Competitors:

• iShares Core MSCI World ETF (IWLD): 0.57% market share
• Vanguard FTSE All-World UCITS ETF (VWRL): 0.39% market share
• Xtrackers MSCI World UCITS ETF 1C (XMWD): 0.34% market share

Expense Ratio: 0.29%

Investment Approach & Strategy:

• Tracks the S&P Global 1200 Index
• Invests in large-cap stocks from developed and emerging markets
• Weights holdings based on market capitalization

Key Points:

• Low-cost, diversified exposure to global equities
• Tracks a broad and representative index
• Highly liquid and easy to trade
• Suitable for long-term investors seeking global market exposure and income

Risks:

• Market Volatility: Equity markets can be volatile, leading to potential losses
• Currency Risk: Exposure to foreign currencies can result in currency fluctuations
• Geopolitical Risks: Global events can impact market performance

Who Should Consider Investing:

• Investors seeking global diversification with a focus on large-cap companies
• Investors with a long-term investment horizon
• Investors comfortable with moderate risk

Fundamental Rating Based on AI:

7.5 out of 10

SPW is a solid ETF with low fees, broad diversification, and consistent performance. Its strengths lie in its efficient tracking of the S&P Global 1200 Index and its robust liquidity. However, its market share is relatively small compared to its competitors, suggesting room for further growth. The AI rating considers various factors like financial health, market position, fees, and growth prospects to arrive at a comprehensive assessment. While the overall fundamentals are strong, there's potential for improvement in terms of market share and brand recognition.

Resources & Disclaimers:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/equity/spw
• S&P Global 1200 Index: https://us.spindices.com/indices/equity/sp-global-1200
• Morningstar: https://www.morningstar.com/etfs/arcx/spw

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.