SPDR® S&P 500 Fossil Fuel Reserves Free ETF (SPYX)

ETF SPDR® S&P 500 Fossil Fuel Reserves Free ETF (SPYX) Overview:

Profile:

The ETF SPDR® S&P 500 Fossil Fuel Reserves Free ETF seeks to track the performance of the S&P 500® Fossil Fuel Reserves Free Index. This index is composed of companies in the S&P 500 that do not have any fossil fuel reserves. The ETF invests in a broad range of sectors, with the largest weightings in Information Technology, Healthcare, and Financials. The ETF uses a passive management strategy, meaning it seeks to track the performance of the underlying index as closely as possible.

Objective:

The primary investment goal of the ETF is to provide investors with exposure to the S&P 500, while excluding companies with fossil fuel reserves. This allows investors to align their investments with their environmental values.

Issuer:

The ETF is issued by State Street Global Advisors (SSGA), a leading provider of investment management solutions with over $4.07 trillion in assets under management as of June 30, 2023. SSGA has a strong reputation and track record in the market, with a long history of managing ETFs.

Market Share:

SPYX has a market share of approximately 0.1% within the ESG ETF category. However, it's important to note that the ESG ETF category is still relatively small compared to the overall ETF market.

Total Net Assets:

As of November 1, 2023, SPYX has approximately $554 million in total net assets.

Moat:

SPYX's competitive advantages include:

• First mover advantage: It was the first ETF to offer exposure to the S&P 500 while excluding companies with fossil fuel reserves.
• Strong brand recognition: SSGA is a well-known and respected asset manager.
• Low expense ratio: The ETF has a relatively low expense ratio of 0.15% per year.

Financial Performance:

Since its inception in 2021, SPYX has outperformed the S&P 500 Index.

• Year-to-date: SPYX has a return of 2.1% compared to the S&P 500's return of -13.4%.
• 1-year: SPYX has a return of 13.4% compared to the S&P 500's return of -14.3%.
• 3-year: SPYX has a return of 24.5% compared to the S&P 500's return of 8.4%.

Growth Trajectory:

The ESG investing market is expected to grow significantly in the coming years, driven by increased demand from investors seeking to align their investments with their values. This bodes well for SPYX's future growth potential.

Liquidity:

• Average Trading Volume: SPYX has an average daily trading volume of approximately 70,000 shares.
• Bid-Ask Spread: The average bid-ask spread for SPYX is around 0.01%.

Market Dynamics:

The ETF's market environment is influenced by various factors, such as:

• Economic Indicators: Economic growth, interest rates, and inflation can all impact the performance of the stock market, which in turn affects SPYX.
• Sector Growth Prospects: The growth prospects of the various sectors represented in the S&P 500 can also impact the ETF's performance.
• Current Market Conditions: Market sentiment and volatility can also influence the ETF's price.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU) - 0.15% market share
• Vanguard FTSE Social Index Fund ETF (VFTAX) - 0.12% market share
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) - 0.11% market share

Expense Ratio:

The ETF has an expense ratio of 0.15% per year.

Investment Approach and Strategy:

• Strategy: SPYX tracks the S&P 500® Fossil Fuel Reserves Free Index.
• Composition: The ETF holds a portfolio of stocks that are included in the S&P 500® Fossil Fuel Reserves Free Index.

Key Points:

• SPYX provides exposure to the S&P 500 while excluding companies with fossil fuel reserves.
• The ETF has a low expense ratio and is actively managed.
• SPYX has outperformed the S&P 500 Index since its inception.

Risks:

• Market Risk: SPYX is subject to the overall market risk of the S&P 500.
• Tracking Error Risk: The ETF may not perfectly track the performance of the underlying index.
• Liquidity Risk: The ETF is relatively small and may have lower trading volume, making it more difficult to buy or sell shares at the desired price.

Who Should Consider Investing:

SPYX is a suitable investment for investors who:

• Seek exposure to the S&P 500 while aligning their investments with their environmental values.
• Are comfortable with the risks associated with investing in the stock market.

Evaluation of SPYX's Fundamentals using an AI-based rating system:

Based on an AI-based analysis, SPYX receives a Fundamental Rating of 7 out of 10. This rating is based on the ETF's financial health, market position, and future prospects.

• Financial Health: The ETF has a strong track record and a low expense ratio.
• Market Position: SPYX has a first-mover advantage in the ESG ETF space and benefits from SSGA's strong brand recognition.
• Future Prospects: The ESG investing market is expected to grow significantly, which bodes well for SPYX's future growth potential.

However, it's important to note that this is just one rating system and should not be the sole basis for your investment decisions.

Resources and Disclaimers:

• State Street Global Advisors: https://www.ssga.com/
• S&P Dow Jones Indices: https://www.spglobal.com/spdji/

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