SPDR S&P Kensho Future Security (FITE)

Overview

The SPDR S&P Kensho Future Security ETF (FUTR) seeks to track the performance of the S&P Kensho Future Security Index. This index is designed to capture companies that are developing or utilizing technologies related to the future of security, encompassing areas like cybersecurity, physical security, and defense. The ETF's strategy is to invest in a diversified basket of U.S.-listed equities that meet the index's criteria.

Reputation and Reliability

State Street Global Advisors (SSGA), the issuer of the SPDR ETFs, is one of the world's largest asset managers with a long-standing reputation for reliability and a broad range of investment products.

Management Expertise

SSGA employs experienced investment professionals and leverages sophisticated research and risk management processes to manage its ETF offerings, including FUTR.

Goal

To provide investors with exposure to companies at the forefront of developing and implementing technologies that shape the future of security.

Investment Approach and Strategy

Strategy: FUTR aims to replicate the performance of the S&P Kensho Future Security Index. This involves investing in companies selected by the index methodology, which focuses on specific themes within the future security sector.

Composition The ETF primarily holds common stocks of U.S. companies. The selection is based on the constituents of the S&P Kensho Future Security Index, which are identified through Kensho's natural language processing and machine learning technology.

Market Share: Specific market share data for individual thematic ETFs like FUTR is difficult to pinpoint precisely as the ETF industry is vast and segmented. However, FUTR operates within the niche of future technology and security-focused ETFs.

Total Net Assets (AUM): 130000000

Key Competitors

• iShares Cybersecurity and Tech ETF (CIBR)
• WisdomTree Cybersecurity Fund (WSCY)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Competitive Landscape

The thematic ETF space, particularly in areas like cybersecurity and future technologies, is increasingly competitive. FUTR competes with ETFs that may have broader or more specific focuses within related sectors. Its advantage lies in its direct alignment with the S&P Kensho Future Security Index's specific methodology. However, competitors might have larger AUM, longer track records, or slightly different investment universes, potentially offering greater liquidity or broader investor appeal.

Historical Performance: [object Object],[object Object],[object Object]

Benchmark Comparison: [object Object]

Expense Ratio: 0.45

Average Trading Volume

The average daily trading volume for SPDR S&P Kensho Future Security ETF is typically in the range of 50,000 to 150,000 shares, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for the SPDR S&P Kensho Future Security ETF generally ranges from 0.05% to 0.15%, suggesting relatively efficient trading costs for investors.

Market Environment Factors

FUTR is influenced by trends in technological innovation, geopolitical events, government spending on defense and security, and the overall economic climate. Growth in the cybersecurity and advanced defense sectors are key drivers.

Growth Trajectory

The ETF's growth is tied to the increasing adoption of security technologies and the expansion of companies operating within this innovative space. The index methodology, driven by Kensho's technology, allows for dynamic adjustments to holdings based on evolving industry trends.

Competitive Edge

FUTR's primary competitive advantage stems from its adherence to the proprietary S&P Kensho Future Security Index. This index utilizes advanced data analytics and machine learning to identify companies at the cutting edge of security technology, offering a focused and forward-looking investment approach. This specialized methodology aims to capture emerging trends before they become widely recognized, providing investors with early access to potential growth opportunities in a rapidly evolving sector.

Volatility

The ETF exhibits moderate historical volatility, typical of growth-oriented technology and security sector investments. Its 1-year standard deviation is approximately 22%.

Market Risk

Market risks include technological obsolescence, intense competition, regulatory changes affecting security and defense industries, and broader economic downturns that can impact corporate spending on security solutions.

Ideal Investor Profile

The ideal investor for SPDR S&P Kensho Future Security ETF is one with a moderate to aggressive risk tolerance, a long-term investment horizon, and an interest in participating in the growth of future security technologies. Investors should understand the thematic nature of the ETF and its potential for both high growth and higher volatility.

Market Risk

This ETF is generally best suited for long-term investors seeking thematic exposure and active traders who can leverage its specific market focus. It is less suitable for passive index followers seeking broad market diversification.

The SPDR S&P Kensho Future Security ETF (FUTR) offers targeted exposure to companies at the forefront of evolving security technologies. Its investment strategy is driven by the S&P Kensho Future Security Index, employing advanced data analytics for company selection. While operating in a competitive thematic ETF landscape, FUTR's specialized index methodology provides a distinct advantage. Investors should be aware of its moderate volatility and the sector-specific risks associated with technological innovation and defense spending, making it suitable for long-term, growth-oriented portfolios.

Data Sources:

• State Street Global Advisors (SSGA) Official Website
• S&P Dow Jones Indices
• Financial Data Providers (e.g., Bloomberg, Refinitiv - data approximated for illustrative purposes)

Disclaimers:

This information is for illustrative purposes only and not financial advice. Market data, AUM, and performance figures are approximate and can change rapidly. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.