SPDR S&P Kensho Future Security (FITE)

Overview

The SPDR S&P Kensho Future Security ETF (XKFS) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Future Security Index. The fund focuses on companies involved in the development of technologies and products that enhance security, including cybersecurity, advanced border security, and robotics used for security purposes. Its asset allocation is primarily within the information technology and industrials sectors.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable asset manager with a long track record in the ETF market.

Management Expertise

SSGA has extensive experience in managing index-tracking ETFs and employs a team of professionals with expertise in various investment strategies.

Goal

To provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Future Security Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the S&P Kensho Future Security Index, which is designed to capture companies focused on security-related technologies and services.

Composition The ETF primarily holds stocks of companies involved in cybersecurity, border security, robotics, and other security-related sectors.

Market Share: Data on market share is highly variable and difficult to ascertain without specific subscription data from vendors like Bloomberg or Morningstar. However, it's estimated that XKFS has a smaller market share compared to broader technology ETFs.

Total Net Assets (AUM): 110400000

Key Competitors

• HACK
• CIBR
• IHAK

Competitive Landscape

The ETF industry focusing on security and cybersecurity is competitive. XKFS differentiates itself by focusing on a broader definition of security that includes border security and robotics, providing a more diversified approach compared to pure cybersecurity ETFs. However, the smaller AUM and lower trading volume may be disadvantages compared to larger, more liquid competitors. Competitive pressures can be driven by expense ratios, tracking error, and index construction.

Historical Performance: Historical performance data is readily available from financial data providers. Specific performance data is dynamic and not included here.

Benchmark Comparison: Performance should be compared to the S&P Kensho Future Security Index to assess tracking effectiveness.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume of XKFS indicates moderate liquidity, which may affect trading costs for large orders.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions and trading volume, and is a factor in calculating overall trading costs.

Market Environment Factors

Economic growth, geopolitical tensions, technological advancements in security, and government regulations can significantly influence the performance of XKFS. Increased demand for cybersecurity solutions and enhanced border security measures drive growth.

Growth Trajectory

Growth is driven by increasing demand for security solutions, but influenced by factors like index rebalancing, and overall market trends.

Competitive Edge

XKFS offers a unique thematic approach by focusing on a broad definition of future security, including cybersecurity, border security, and robotics. This diversification helps mitigate sector-specific risks. SSGA's established reputation and expertise in managing ETFs also contribute to its competitive edge. This broad focus allows it to capture a wider range of investment opportunities in the security sector.

Volatility

Volatility can be assessed using historical price data and comparing it to benchmark indices. Sector specific ETFs can experience high volatility during certain periods.

Market Risk

Market risk includes general economic downturns and specific risks associated with the technology and industrials sectors, such as regulatory changes, technological obsolescence, and competition.

Ideal Investor Profile

The ideal investor for XKFS is someone seeking exposure to the future security sector and is comfortable with moderate risk. Investors interested in technological advancements and security solutions may find this ETF suitable.

Market Risk

XKFS may be suitable for long-term investors seeking thematic exposure, but active traders may also utilize it for short-term opportunities.

SPDR S&P Kensho Future Security ETF (XKFS) provides exposure to companies involved in the development of future security technologies and products, tracking the S&P Kensho Future Security Index. Itu2019s managed by SSGA, a reputable issuer, and offers a relatively diversified approach within the security sector. However, its AUM is smaller, and liquidity should be considered before making any big transactions. Investors need to be aware of the risks associated with investing in specific sectors and assess whether XKFS aligns with their investment objectives and risk tolerance.

Data Sources:

• State Street Global Advisors (SSGA) website
• Bloomberg
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Consult with a qualified financial advisor before making any investment decisions.