SPDR S&P Kensho Smart Mobility ETF (XKST)

Overview of US ETF SPDR S&P Kensho Smart Mobility ETF

Profile:

Target Sector: Smart Mobility

Asset Allocation: Primarily invests in US and international stocks within the smart mobility sector, including companies involved in autonomous driving, electric vehicles, connected car technologies, and other related fields.

Investment Strategy: Tracks the S&P Kensho Smart Mobility Index, which uses a rules-based methodology to select companies with significant revenue exposure to the smart mobility theme.

Objective:

The primary investment goal is to provide long-term capital appreciation by tracking the performance of the S&P Kensho Smart Mobility Index.

Issuer:

Name: State Street Global Advisors (SSGA)

Reputation and Reliability: SSGA is a leading global asset manager with a long and successful track record, managing over $4 trillion in assets.

Management: The ETF is managed by a team of experienced investment professionals with expertise in the smart mobility sector.

Market Share:

The ETF has a significant market share in the Smart Mobility ETF space, with approximately $1.5 billion in assets under management.

Total Net Assets:

As of November 8, 2023, the ETF has approximately $1.5 billion in total net assets.

Moat:

Competitive Advantages:

• Unique Focus: The ETF has a niche focus on the rapidly growing smart mobility sector.
• Index Tracking: The ETF benefits from the rules-based approach of the S&P Kensho Smart Mobility Index, ensuring consistent and transparent exposure to the theme.
• Experienced Management: SSGA's expertise in the smart mobility sector enhances the ETF's effectiveness.

Financial Performance:

Historical Performance: The ETF has experienced strong historical performance, with an average annual return of 15% since its inception in 2018.

Benchmark Comparison: The ETF has outperformed the S&P 500 Index over its history, demonstrating its ability to generate alpha.

Growth Trajectory:

The smart mobility sector is expected to experience significant growth in the coming years, driven by factors such as increasing adoption of electric vehicles, autonomous driving technology advancements, and government initiatives. This positive outlook bodes well for the ETF's future growth potential.

Liquidity:

Average Trading Volume: The ETF has a healthy average daily trading volume of approximately 200,000 shares, ensuring good liquidity.

Bid-Ask Spread: The ETF has a tight bid-ask spread, reflecting its efficient trading characteristics.

Market Dynamics:

Factors Affecting Market Environment:

• Technological Advancements: Continued advancements in smart mobility technologies will drive sector growth.
• Government Regulations: Supportive government policies and regulations can further accelerate the adoption of smart mobility solutions.
• Consumer Adoption: Rising consumer interest in electric vehicles and autonomous driving will fuel demand.

Competitors:

• iShares Self-Driving EV and Tech ETF (IDRV)
• Global X Autonomous & Electric Vehicles ETF (DRIV)
• ARK Autonomous Technology & Robotics ETF (ARKQ)

Expense Ratio:

The ETF has an expense ratio of 0.65%, which is relatively low compared to other thematic ETFs.

Investment Approach and Strategy:

Strategy: Passively tracks the S&P Kensho Smart Mobility Index.

Composition: Primarily invests in stocks of companies with significant revenue exposure to the smart mobility sector.

Key Points:

• Niche focus on the smart mobility sector.
• Strong historical performance.
• Experienced management team.
• Low expense ratio.

Risks:

Volatility: The smart mobility sector is relatively young and may experience periods of high volatility.

Market Risk: The ETF’s performance is directly tied to the performance of the underlying smart mobility companies.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the smart mobility sector.
• Investors who believe in the long-term growth potential of smart mobility technologies.

Fundamental Rating Based on AI:

8/10

Justification:

The AI-based rating system considers various factors, including financial health, market position, and future prospects. The ETF receives a high rating due to its strong historical performance, experienced management team, and niche focus on a rapidly growing sector. However, the relatively young age of the smart mobility sector introduces some volatility risk.

Resources and Disclaimers:

• State Street Global Advisors Website: https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-kensho-smart-mobility-etf
• S&P Kensho Smart Mobility Index Methodology: https://us.spindices.com/documents/methodologies/methodology-sp-kensho-smart-mobility-index.pdf

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