SPDR Kensho New Economies Composite (KOMP)

Overview

The SPDR Kensho New Economies Composite ETF (KOMP) seeks to track the performance of the Kensho New Economies Composite Index, which is composed of U.S.-listed companies that are driving innovation and transforming the global economy. It focuses on sectors like artificial intelligence, automation, biotechnology, and clean energy, representing a diversified exposure to disruptive technologies. Asset allocation is predominantly in equities, with a strategy to capture the growth potential of emerging industries.

Reputation and Reliability

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

Management Expertise

SSGA has extensive experience managing a wide range of ETFs and is known for its expertise in index-based investing.

Goal

To provide investment results that, before fees and expenses, correspond generally to the total return performance of the Kensho New Economies Composite Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Kensho New Economies Composite Index.

Composition The ETF holds primarily stocks of companies involved in innovative sectors like automation, AI, biotech, and clean energy.

Market Share: Market share information for the KOMP ETF specifically can be difficult to find as the broader market is defined by its sector exposure.

Total Net Assets (AUM): 69610000

Key Competitors

• ARK Innovation ETF (ARKK)
• Global X Autonomous & Electric Vehicles ETF (DRIV)
• ROBO Global Robotics and Automation Index ETF (ROBO)

Competitive Landscape

The competitive landscape is characterized by several ETFs focusing on disruptive technologies and innovation. KOMP offers a broader, more diversified approach across various new economy sectors. Competitors like ARKK focus more narrowly on specific disruptive technologies, while ROBO focuses on robotics and automation. KOMP's advantage lies in its diversification, but this might lead to lower potential returns compared to more concentrated funds during specific technology booms.

Historical Performance: Historical performance data is readily available from financial data providers, showcasing returns over various periods (e.g., 1-year, 3-year, 5-year, and since inception).

Benchmark Comparison: The ETF's performance should be compared against the Kensho New Economies Composite Index to evaluate tracking efficiency.

Expense Ratio: 0.2

Average Trading Volume

The average trading volume for KOMP reflects adequate liquidity for typical trading activity.

Bid-Ask Spread

The bid-ask spread for KOMP is generally tight, indicating lower trading costs.

Market Environment Factors

Economic indicators, technological advancements, regulatory changes, and investor sentiment towards innovation influence the performance of KOMP.

Growth Trajectory

KOMP's growth trajectory is tied to the adoption and expansion of new economy sectors like AI, automation, and biotechnology, with potential adjustments based on market trends and index rebalancing.

Competitive Edge

KOMP's competitive advantage lies in its broad diversification across multiple emerging technology sectors. Its index-tracking strategy provides exposure to a wide range of companies driving the new economy. This diversified approach mitigates risk associated with investing in single sectors. Moreover, SSGA's reputation and expertise in index-based investing enhance the ETF's credibility and appeal. It seeks to capture the growth of tomorrow's economy through a composite strategy.

Volatility

KOMP's historical volatility is influenced by the inherent volatility of growth stocks and emerging technology sectors.

Market Risk

Specific risks include technology obsolescence, regulatory changes, competitive pressures, and broader market downturns affecting growth stocks.

Ideal Investor Profile

The ideal investor for KOMP is one seeking long-term growth potential through exposure to innovative companies and emerging technologies. They should have a moderate to high-risk tolerance.

Market Risk

KOMP is suitable for long-term investors looking to capitalize on the growth of the new economy. It may also appeal to active traders seeking exposure to disruptive technologies.

The SPDR Kensho New Economies Composite ETF (KOMP) offers diversified exposure to innovative companies driving the new economy. It tracks the Kensho New Economies Composite Index and is managed by State Street Global Advisors. While it provides a broader approach compared to more focused tech ETFs, its performance is subject to the volatility of growth stocks and emerging sectors. It suits investors with a long-term horizon and a moderate to high-risk tolerance, seeking to capitalize on technological advancements.

Data Sources:

• SSGA Website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data may fluctuate.