SPDR Kensho New Economies Composite (KOMP)

Overview

The SPDR Kensho New Economies Composite ETF (KOMP) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Kensho New Economies Composite Index. The index is designed to capture the performance of companies focused on the Fourth Industrial Revolution and disruptive innovation across various sectors.

Reputation and Reliability

State Street is a reputable and well-established ETF provider with a long track record in the industry.

Management Expertise

State Street has extensive experience in managing ETFs and passive investment strategies.

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: Tracks the Kensho New Economies Composite Index, which uses artificial intelligence to identify companies driving innovation.

Composition Primarily invests in equities of companies involved in the Fourth Industrial Revolution.

Market Share: KOMP's market share within the broader innovation ETF space is moderate, influenced by the presence of larger, more established competitors.

Total Net Assets (AUM): 527497843.21

Key Competitors

• ARK Innovation ETF (ARKK)
• Global X Autonomous & Electric Vehicles ETF (DRIV)
• iShares Robotics and Artificial Intelligence ETF (IRBO)

Competitive Landscape

The ETF industry is highly competitive. KOMP differentiates itself by its unique index construction based on Kensho's AI platform, but faces competition from larger ETFs with greater brand recognition and AUM. The advantages of KOMP is its diverse exposure to innovative sectors but the disadvantage is its relatively smaller size and less liquidity compared to the competitors.

Historical Performance: Historical performance data is available on various financial websites. (This data is dynamic and would require a real-time data feed to populate)

Benchmark Comparison: The ETF's performance is benchmarked against the Kensho New Economies Composite Index.

Expense Ratio: 0.2

Average Trading Volume

KOMP exhibits moderate liquidity, with an average daily trading volume that supports relatively efficient trading.

Bid-Ask Spread

The bid-ask spread for KOMP is typically reasonable, indicating relatively low transaction costs for investors.

Market Environment Factors

Economic growth, technological advancements, interest rates, and regulatory changes can influence the performance of KOMP.

Growth Trajectory

KOMP's growth trajectory is linked to the expansion and adoption of technologies related to the Fourth Industrial Revolution. Changes in strategy have been minimal since the ETF's inception, focusing on the target index.

Competitive Edge

KOMP's competitive edge lies in its unique index, which utilizes artificial intelligence and natural language processing to identify companies driving innovation in emerging sectors. This innovative approach allows KOMP to offer a differentiated investment strategy compared to traditional sector-specific ETFs. Kensho's methodology provides a systematic and data-driven approach to identifying and weighting companies. This reduces human bias and potentially identifies emerging trends more effectively. Its broad exposure to the New Economies sector can potentially provide diversification benefits.

Volatility

KOMP's historical volatility is expected to be moderate to high, reflecting the growth-oriented nature of the companies it holds.

Market Risk

KOMP is subject to market risk, particularly related to technology and growth stocks, which can be sensitive to economic cycles and investor sentiment.

Ideal Investor Profile

The ideal investor for KOMP is someone seeking exposure to innovative companies and disruptive technologies, with a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

KOMP is suitable for long-term investors seeking growth potential and exposure to future-oriented industries. It is less suitable for risk-averse investors or those seeking immediate income.

SPDR Kensho New Economies Composite ETF (KOMP) offers investors access to companies at the forefront of technological innovation. The ETFu2019s performance is tied to the success of its AI-driven stock selection process in identifying new economy leaders. Investors should note KOMP carries inherent risks associated with high-growth companies and emerging technologies. Its unique approach offers potential for long-term growth in a rapidly evolving investment landscape, but requires a higher risk tolerance. Due to the nature of the underlying investments, and the overall market volatility, potential investors should consult with a financial advisor before committing funds.

Data Sources:

• State Street Global Advisors website
• ETF.com
• Morningstar
• Kensho
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Consult with a qualified financial advisor before making any investment decisions. Market share data is approximate and may vary depending on the source and calculation methodology. Historical performance is not indicative of future results.