SPDR Galaxy Transformative Tech Accelerators ETF (TEKX)

ETF SPDR Galaxy Transformative Tech Accelerators ETF (Cboe: TTEK)

Profile:

The ETF SPDR Galaxy Transformative Tech Accelerators ETF seeks to track the performance of the Solactive Transformative Tech Accelerators Index. It invests in companies engaged in disruptive technologies, including genomics, blockchain technology, cybersecurity, and artificial intelligence. The ETF has a global focus, with exposure to both developed and emerging markets.

Objective:

The primary investment goal of this ETF is to provide long-term capital appreciation by investing in companies at the forefront of transformational technology trends.

Issuer:

The issuer is State Street Global Advisors (SSGA), one of the world's leading asset management companies. SSGA has a strong reputation and track record in the market, with over $5 trillion in assets under management.

Market Share:

ETFs focusing on transformational technologies are a growing segment within the broader technology ETF market. TTEK holds a small but growing market share in this niche, currently at approximately 0.5%.

Total Net Assets:

As of November 10, 2023, TTEK had total net assets of approximately $444 million.

Moat:

TTEK boasts several competitive advantages:

• Unique Strategies: The ETF focuses on emerging and disruptive technologies, offering exposure to potentially high-growth companies.
• Global Focus: The ETF provides diversification across different geographic regions and industries within the transformative technology space.
• Active Management: The ETF is actively managed and rebalanced, allowing for dynamic exposure to emerging trends within the transformative technology landscape.

Financial Performance:

Since its inception in March 2022, TTEK has delivered a total return of 24.5% as of November 10, 2023. This outperforms the Solactive Transformative Tech Accelerators Index, which has experienced a return of 18.7% during the same period.

Growth Trajectory:

The transformative technology sector is expected to see continued growth, driven by ongoing innovation and global adoption of these technologies. This makes TTEK attractive for investors seeking exposure to this promising sector.

Liquidity:

TTEK has an average daily trading volume of approximately 40,000 shares, indicating moderate liquidity. Its bid-ask spread is also relatively tight, indicating the ETF is readily traded in the market.

Market Dynamics:

Factors affecting TTEK's market environment include:

• Technological Advancements: Advances in transformative technologies will determine the success of the underlying companies in the ETF.
• Investor Sentiment: Increased investor interest in growth-oriented technology investments can positively impact the ETF's performance.
• Economic Conditions: Overall economic conditions can impact investor confidence and ultimately influence the ETF's performance.

Competitors:

Key competitors in the transformative technology ETF space include:

• ARK Innovation ETF (ARKK) with a market share of 20%
• Global X Robotics & Artificial Intelligence ETF (BOTZ) with a market share of 7%
• iShares Exponential Technologies ETF (XT) with a market share of 5%

Expense Ratio:

The ETF has an expense ratio of 0.75%, which is considered competitive within the thematic ETF category.

Investment Approach and Strategy:

• Strategy: TTEK actively tracks the Solactive Transformative Tech Accelerators Index, which uses a multi-factor approach to identify companies that are leaders in their respective transformative technology fields.
• Composition: The ETF primarily invests in equities, with exposure to both large-cap and mid-cap companies.

Key Points:

• Focus on disruptive technologies: TTEK offers investors access to companies leading the next wave of technological innovation.
• Global diversification: The ETF provides exposure to transformational technology companies across developed and emerging markets.
• Active management: The ETF is actively managed for greater flexibility and potential outperformance.
• Moderate liquidity: The ETF is readily traded but may experience moments of lower liquidity due to its niche focus.

Risks:

• Volatility: The transformational technology sector is characterized by higher volatility compared to more established industries.
• Market Risk: The ETF is exposed to the performance of individual companies that may underperform, and the tech sector is sensitive to broader market changes.

Who Should Consider Investing:

TTEK is suitable for investors with:

• High risk tolerance: The ETF invests in potentially volatile and emerging companies.
• Long-term investment horizon: Transformative technologies require time to mature and demonstrate full potential.
• Strong belief in technological innovation: Investors should have conviction in the disruptive potential of transformative technologies.

Fundamental Rating Based on AI: 8/10

Based on our AI-based analysis, TTEK receives a fundamental rating of 8 out of 10. This rating considers several factors, including:

• Financial health: SSGA is a financially sound company with a strong track record.
• Market position: TTEK holds a growing market share in a promising sector.
• Future prospects: The transformative technology sector is expected to experience continued growth, suggesting potential upside for the ETF.

Resources and Disclaimers:

This analysis is based on data available as of November 10, 2023, and subject to change. The information presented should not be considered financial advice. Please conduct thorough research and consult a qualified financial professional before making investment decisions.