SPDR S&P Kensho Smart Mobility ETF (XKST)

ETF SPDR S&P Kensho Smart Mobility ETF: An Overview

Profile:

The ETF SPDR S&P Kensho Smart Mobility ETF (HAIL) is a thematic exchange-traded fund focused on the smart mobility sector. It tracks the S&P Kensho Smart Mobility Index, which selects companies involved in the development and application of smart mobility technologies. These include autonomous vehicles, electric vehicles, shared mobility, connected infrastructure, and advanced transportation systems. HAIL invests primarily in US-listed equities, with a significant portion allocated to technology and industrials sectors. The fund uses a passive management strategy, aiming to track the performance of its underlying index.

Objective:

The primary objective of HAIL is to provide investors with long-term capital appreciation by investing in companies driving the growth of the smart mobility industry.

Issuer:

State Street Global Advisors (SSGA) is the issuer of HAIL.

• Reputation and Reliability: SSGA is a leading asset management firm with over $4 trillion in assets under management. It has a strong reputation for its experience and expertise in managing ETFs and other investment products.
• Management: The ETF is managed by a team of experienced investment professionals with deep knowledge of the smart mobility sector.

Market Share:

HAIL is a relatively new ETF, launched in 2021. It currently has a market share of approximately 0.5% within the thematic ETF space.

Total Net Assets:

As of November 9, 2023, HAIL has total net assets of over $400 million.

Moat:

• First-mover advantage: HAIL is one of the first ETFs focused solely on the smart mobility sector, giving it a potential edge in attracting investors interested in this fast-growing industry.
• Strong track record: Despite its recent launch, HAIL has outperformed the broader market and its benchmark index, demonstrating its potential for strong returns.
• Experienced management team: The ETF's management team has a deep understanding of the smart mobility sector and the ability to select companies poised for growth.

Financial Performance:

• Since inception (March 2021): HAIL has generated a total return of over 25%, outperforming the S&P 500 by a significant margin.
• Year-to-date (as of November 9, 2023): HAIL has returned over 15%, again outperforming the broader market.

Benchmark Comparison:

HAIL's primary benchmark is the S&P Kensho Smart Mobility Index. The ETF has consistently outperformed the index since its inception, demonstrating its effective tracking and stock selection capabilities.

Growth Trajectory:

The smart mobility sector is expected to experience significant growth in the coming years, driven by factors such as rising urbanization, increasing environmental concerns, and technological advancements. This positive outlook bodes well for HAIL's future performance.

Liquidity:

• Average Daily Trading Volume: HAIL has a decent average daily trading volume, exceeding 100,000 shares, ensuring easy buying and selling of the ETF.
• Bid-Ask Spread: The bid-ask spread for HAIL is relatively tight, indicating low transaction costs associated with trading the ETF.

Market Dynamics:

The smart mobility sector is influenced by various factors, including:

• Government policies: Supportive government policies promoting electric vehicles and autonomous driving can positively impact the sector's growth.
• Technological advancements: Continuous innovation in areas like battery technology and artificial intelligence will drive further development in smart mobility solutions.
• Consumer adoption: Increasing consumer acceptance of shared mobility and autonomous vehicles will fuel industry growth.

Competitors:

• ARK Autonomous Technology & Robotics ETF (ARKQ): Market share - 1.5%
• iShares Self-Driving EV and Tech ETF (IDRV): Market share - 0.8%

Expense Ratio:

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

Investment Approach and Strategy:

• Strategy: HAIL passively tracks the S&P Kensho Smart Mobility Index, investing in the same constituents and weightings as the index.
• Composition: The ETF holds a diversified portfolio of stocks across various segments of the smart mobility industry, including electric vehicles, autonomous driving, connected infrastructure, and shared mobility.

Key Points:

• Focused exposure to the rapidly growing smart mobility sector.
• Strong track record of outperformance since inception.
• Experienced management team with deep sector knowledge.
• Relatively low expense ratio.

Risks:

• Volatility: The smart mobility sector is relatively young and can experience higher volatility than the broader market.
• Market Risk: The ETF's performance is directly tied to the performance of the smart mobility sector, which is subject to various economic and technological factors.

Who Should Consider Investing:

HAIL is suitable for investors:

• Seeking long-term capital appreciation through exposure to the smart mobility sector.
• Comfortable with a higher-risk, thematic investment approach.
• Believing in the growth potential of the smart mobility industry.

Fundamental Rating Based on AI:

7.5/10

HAIL receives a strong rating based on its robust financial performance, experienced management team, and first-mover advantage in the smart mobility ETF space. Its exposure to a high-growth industry further strengthens its potential. However, investors should be aware of the inherent volatility associated with thematic ETFs and the risks specific to the smart mobility sector.

Resources and Disclaimers:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=hail
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/hail
• Morningstar: https://www.morningstar.com/etfs/arcx/hail/quote

Disclaimer: The information provided here is for educational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.