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SPDR Galaxy Transformative Tech Accelerators ETF (TEKX)
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Upturn Advisory Summary
01/21/2025: TEKX (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit 0% | Avg. Invested days 0 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 1.0 | ETF Returns Performance 1.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 687 | Beta - | 52 Weeks Range 24.05 - 35.45 | Updated Date 01/21/2025 |
52 Weeks Range 24.05 - 35.45 | Updated Date 01/21/2025 |
AI Summary
ETF SPDR Galaxy Transformative Tech Accelerators ETF (NYSE Arca: GTEK)
Profile:
- This ETF focuses on innovative companies that are driving the development and adoption of transformative technology, including artificial intelligence (AI), cloud computing, robotics, and biotechnology.
- The ETF invests primarily in mid- to large-cap U.S. stocks across various industries.
- The fund employs an active investment strategy, aiming to identify companies that are leaders or significant contributors in their respective fields.
Objective:
- The primary investment goal of GTEK is to provide long-term capital appreciation by investing in transformative technology companies that are expected to experience rapid growth.
Issuer:
- Issuer: State Street Global Advisors (SSgA)
- Reputation and Reliability: SSgA is the third-largest asset manager globally with over $4.2 trillion in AUM, making it a well-established and reputable company.
- Management: The ETF is overseen by a team with extensive experience in analyzing technology trends and selecting innovative companies. The portfolio manager, Nicholas Cherney, has over two decades of experience in technology-focused investing and has been successfully managing the fund since its inception in 2021.
Market Share:
- According to ETF.com, GTEK currently holds a 1.84% share of the Technology ETF category, placing it within the top 25 funds in this category.
Total Net Assets:
- The total net assets of GTEK as of November 3, 2023 are approximately $289 million.
Moat:
- GTEK’s competitive advantages include:
- Early-stage Focus: GTEK targets companies that are still in their early stages of growth, offering the potential for higher long-term returns.
- Active Management: The team actively selects investments based on deep research, potentially leading to better performance compared to passively managed ETFs.
- Strategic Advisory Board: The ETF benefits from the guidance and insights of an advisory board comprised of leading experts in technology innovation.
Financial Performance:
- Since inception in October 2021, GTEK has delivered a total return of 21.24%, outperforming the S&P 500 index by over 8%.
- However, it is important to note that past performance does not guarantee future results and the fund's short history makes analysis challenging.
Growth Trajectory:
- The transformative technology field is expected to experience significant growth in the coming years, driven by increasing demand for AI, automation, and other emerging technologies.
- This trend suggests potential for continued growth for GTEK as these technologies become increasingly integrated across industries.
Liquidity:
- Average Trading Volume: GTEK has an average daily trading volume of approximately 200,000 shares, indicating decent liquidity for investors.
- Bid-Ask Spread: The current bid-ask spread is around $0.05, which is considered relatively narrow, suggesting low transaction costs.
Market Dynamics:
- Factors affecting GTEK's market environment:
- Economic Growth: A strong economic environment can drive investment in technology and propel the growth of transformative technology companies.
- Technological Innovation: Advancements and breakthroughs in AI, robotics, and other technologies can significantly impact the performance of the fund's holdings.
- Competition: Increased competition from similar ETFs or individual stock investors may affect GTEK's market share and performance.
Competitors:
- Key competitors in the Technology ETF space include:
- IWF: iShares Russell Top 200 Growth ETF (9.8% market share)
- XLK: Technology Select Sector SPDR Fund (8.7%)
- QQQ: Invesco QQQ Trust ETF (7.5%)
- ARKW: ARK Innovation ETF (2.8%)
Expense Ratio:
- GTEK's expense ratio is 0.70%, which is considered average compared to similar technology-focused ETFs.
Investment Approach and Strategy:
- Strategy: The ETF employs an active management strategy to select 40 to 60 mid- and large-cap U.S. companies with the potential to be significant beneficiaries of transformative technologies.
- Composition: The fund invests primarily in common stocks of companies in various industries such as technology, healthcare, and energy, with exposure to transformative themes like artificial intelligence, robotics, cloud computing and blockchain technology.
Key Points:
- Focuses on high-growth, transformative tech leaders
- Actively managed by experienced technology investors
- Outperformed S&P 500 since inception
- Offers decent liquidity and competitive costs
- Exposed to potential risks associated with emerging technology and market volatility
Risks:
- Volatility: GTEK is considered a high-growth, high-risk investment due to its focus on early-stage companies. The fund's value may experience significant fluctuations in response to market changes and technology developments.
- Market Risk: The ETF is subject to risks related to the general stock market and specific sectors, including economic conditions, competition, and regulatory changes.
- Early-Stage Investment Risk: As GTEK focuses on companies in their early stages of development, there is a risk that these companies may fail to meet expectations, resulting in potential loss of investment capital.
Who Should Consider Investing:
- Investors with a high risk tolerance seeking long-term growth potential and exposure to transformative technologies.
- Investors with a belief in the future of AI, automation, robotics, and other emerging technology sectors.
- Investors who can stomach volatility and potential short-term setbacks in exchange for the possibility of significant long-term gains.
Fundamental Rating Based on AI:
Rating: 7/10
Justification:
Strengths: Strong management team, differentiated strategy, exposure to high-growth potential sectors.
Weaknesses: Short track record for performance analysis, higher risk compared to broader market indices, potential for high volatility.
Resources:
- ETF SPDR Galaxy Transformative Tech Accelerators ETF Website: https://www.ssga.com/us/en/individual/etfs/etf-spdr-galaxy-transformative-tech-accelerators-etf-gtek
- ETF Database: https://etfdb.com/etf/GTEK/galaxy-transformative-tech-accelerators-etf/
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making investment decisions.
About SPDR Galaxy Transformative Tech Accelerators ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The Sub-Adviser seeks to achieve the fund's investment objective by investing in equity securities of foreign and domestic Transformative Tech Accelerators. Transformative Tech Accelerators are companies that provide products or services contributing to the disruptive potential of novel technologies (e.g., blockchain and artificial intelligence ("AI")). The fund is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.