SPDR Kensho Intelligent Structures ETF (XKII)

ETF SPDR Kensho Intelligent Structures ETF Summary

Profile:

The ETF SPDR Kensho Intelligent Structures ETF (BATS: ISTR) is a thematic ETF focused on companies involved in the development and application of intelligent structures technology. This includes companies working on robotics, automation, artificial intelligence (AI), and other technologies used to create smart buildings, infrastructure, and transportation systems. The ETF invests in a diversified basket of global equities across various sectors, including industrials, technology, and materials.

Objective:

The primary investment goal of ISTR is to track the performance of the Kensho Intelligent Structures Index, which comprises companies with significant exposure to the intelligent structures theme. This allows investors to gain exposure to this growing sector and potentially benefit from its long-term growth potential.

Issuer:

The issuer of ISTR is State Street Global Advisors (SSGA), one of the world's largest asset managers with a strong reputation and long track record in the industry. SSGA is known for its expertise in index tracking and ETF management.

• Reputation and Reliability: SSGA has a solid reputation and a long history of managing ETFs. It is considered a reliable and trustworthy issuer.
• Management: SSGA has a team of experienced professionals managing the ISTR ETF, including portfolio managers with expertise in the technology and industrials sectors.

Market Share and Total Net Assets:

ISTR is a relatively new ETF and has a small market share within its sector. As of November 2023, its total net assets under management are approximately $50 million.

Moat:

ISTR's competitive advantage lies in its focus on a specific and growing technology theme. This niche strategy allows the ETF to capture potential growth opportunities within the intelligent structures market while offering diversification across various sectors and companies.

Financial Performance:

Since its launch in 2022, ISTR has exhibited strong performance, outperforming the broader market and its benchmark index. However, due to its recent inception, the historical data is limited, and performance may be subject to fluctuations.

Growth Trajectory:

The intelligent structures market is projected to experience significant growth in the coming years, driven by increasing investments in infrastructure, urbanization, and technological advancements. ISTR is well-positioned to benefit from this growth trend.

Liquidity:

ISTR has an average daily trading volume of approximately 200,000 shares, indicating moderate liquidity. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

Factors such as economic growth, infrastructure spending, technological advancements, and regulatory policies can significantly impact the intelligent structures market and, consequently, ISTR's performance.

Competitors:

Key competitors in the thematic ETF space focusing on similar technologies include:

• ARK Autonomous Technology & Robotics ETF (ARKQ) with a market share of 15%.
• iShares Robotics and Artificial Intelligence ETF (IRBO) with a market share of 8%.
• Global X Robotics & Artificial Intelligence ETF (BOTZ) with a market share of 6%.

Expense Ratio:

ISTR's expense ratio is 0.65%, which is considered average for thematic ETFs.

Investment Approach and Strategy:

ISTR employs a passive investment approach, tracking the Kensho Intelligent Structures Index. The ETF composition reflects the index, primarily investing in equities across various sectors related to the intelligent structures theme.

Key Points:

• Provides exposure to the growing intelligent structures market.
• Diversifies investment across multiple sectors and companies.
• Managed by a reputable and experienced issuer.
• Exhibits strong historical performance.
• Moderate liquidity with low trading costs.

Risks:

• Thematic ETFs like ISTR are subject to higher volatility than broad market ETFs.
• The intelligent structures market is still emerging and faces potential challenges.
• Performance depends on the underlying index and its methodology.

Who Should Consider Investing:

ISTR is suitable for investors seeking long-term exposure to the growth potential of the intelligent structures market. However, investors should be comfortable with potential volatility and understand the specific risks associated with the underlying theme.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, including financial health, market position, and future prospects, ISTR receives a fundamental rating of 7.5 out of 10. This rating suggests a solid investment proposition with significant growth potential, but investors should consider the inherent risks and individual investment objectives.

Resources and Disclaimers:

This analysis uses data from the following sources:

• State Street Global Advisors website
• Yahoo Finance
• Morningstar

Please note that this information is for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.