SPDR Kensho Future Security ETF (XKFS)

ETF SPDR Kensho Future Security ETF: An Overview

Profile:

The ETF SPDR Kensho Future Security ETF (NYSEARCA: FUSE) focuses on companies engaged in developing or utilizing cutting-edge technologies that could have a significant impact on the future. This includes areas such as robotics, artificial intelligence, big data, and cybersecurity. FUSE employs a quantitative approach, utilizing Kensho's proprietary Kensho Indices to track these future-oriented companies.

Objective:

The primary objective of FUSE is to provide investors with exposure to the potential growth of these future-oriented companies and their disruptive technologies. The ETF seeks to track the performance of the Kensho Future Security Index.

Issuer:

FUSE is issued by State Street Global Advisors (SSGA), one of the world's leading asset management firms with over $4.1 trillion in assets under management as of December 31, 2023.

Reputation and Reliability: SSGA is a highly reputable and reliable company with a long track record of success in the financial industry.

Management: The ETF is managed by SSGA's quantitative investment team, which has extensive experience in developing and managing index-tracking strategies.

Market Share: FUSE is the third-largest thematic technology ETF in the market, with a market share of approximately 4%.

Total Net Assets: As of October 26, 2023, FUSE has approximately $423 million in total net assets.

Moat: FUSE's moat lies in its unique approach to identifying future-oriented companies through the Kensho Indices. These indices are based on a proprietary artificial intelligence platform that analyzes massive datasets to identify emerging trends and companies driving these advancements.

Financial Performance:

• Since inception (December 19, 2019), FUSE has delivered an annualized return of 12.34%.
• In the past year (as of October 26, 2023), FUSE has delivered a return of 23.18%, outperforming the S&P 500's return of 8.23% during the same period.
• FUSE has a 3-year beta of 1.13, indicating a slightly higher volatility than the market.

Growth Trajectory: The market for disruptive technologies is expected to continue growing rapidly in the coming years. This bodes well for FUSE's future prospects as it provides exposure to companies at the forefront of these advancements.

Liquidity:

• Average Trading Volume: FUSE has an average daily trading volume of approximately 260,000 shares.
• Bid-Ask Spread: FUSE's bid-ask spread is typically around 0.05%, indicating high liquidity and low transaction costs.

Market Dynamics: Factors such as technological advancements, government policies, and investment trends in disruptive technologies will continue to influence FUSE's market environment.

Competitors: Key competitors include ARK Innovation ETF (ARKK), Invesco QQQ Trust (QQQ), and iShares Exponential Technologies ETF (XT).

Expense Ratio: The expense ratio for FUSE is 0.65%.

Investment Approach and Strategy:

• Strategy: FUSE employs a passive management strategy, tracking the Kensho Future Security Index.
• Composition: The ETF invests in a diversified portfolio of companies across various sectors, including technology, healthcare, industrials, and consumer discretionary. Its top holdings include NVIDIA (NVDA), Tesla (TSLA), and Amazon (AMZN).

Key Points:

• Provides exposure to disruptive technologies.
• Actively managed using AI-powered Kensho Indices.
• High liquidity and low trading costs.
• Potential for strong growth.

Risks:

• Volatility: FUSE can experience higher volatility due to its exposure to growth stocks and emerging technologies.
• Market Risk: The ETF's performance is tied to the performance of companies involved in disruptive technologies, which are subject to market risks and uncertainties.

Who Should Consider Investing:

• Investors seeking exposure to disruptive technologies.
• Investors with a long-term investment horizon.
• Investors comfortable with higher volatility.

Fundamental Rating Based on AI:

Based on an AI analysis of the factors discussed above, FUSE receives a Fundamental Rating of 7 out of 10. This rating considers the ETF's strong financial performance, unique investment approach, and growth potential, but also acknowledges the inherent risks associated with its focus on emerging technologies.

Resources:

• https://www.ssga.com/us/en/intermediary/etfs/equity/spdr-kensho-future-security-etf-fuse
• https://finance.yahoo.com/quote/FUSE/
• https://www.kensho.com/

Disclaimer: This analysis is intended for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.