SPDR Kensho Future Security ETF (XKFS)

Overview

The SPDR Kensho Future Security ETF (XKFS) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Kensho Future Security Index. The index is designed to capture companies focused on innovations in security, including cybersecurity, advanced border security, and robotics for security applications.

Reputation and Reliability

State Street is one of the world's largest asset managers with a long history of providing reliable and well-managed ETFs.

Management Expertise

State Street has extensive experience in managing a wide range of ETFs, and their team possesses significant expertise in the ETF market.

Goal

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

Investment Approach and Strategy

Strategy: The ETF tracks the Kensho Future Security Index, which is designed to capture companies focused on innovations in the security sector.

Composition The ETF primarily holds stocks of companies involved in cybersecurity, advanced border security, and robotics for security applications.

Market Share: Difficult to determine precise market share due to varying definitions of the 'security' sector, and overlap with other tech ETFs.

Total Net Assets (AUM): 18320000

Key Competitors

• First Trust NASDAQ Cybersecurity ETF (CIBR)
• ETFMG Prime Cyber Security ETF (HACK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Competitive Landscape

The competitive landscape is moderately concentrated, with a few large cybersecurity and robotics ETFs dominating the market. XKFS differentiates itself by targeting a broader definition of future security, including border security, but its smaller AUM makes it less liquid compared to its larger competitors. A main disadvantage is the fundu2019s small assets under management, which can contribute to higher trading costs. A key advantage is its broader focus compared to pure cybersecurity plays.

Historical Performance: Historical performance data can be obtained from financial data providers.

Benchmark Comparison: Benchmark performance data can be obtained from financial data providers and compared to XKFS's returns.

Expense Ratio: 0.45

Average Trading Volume

The average daily trading volume of XKFS is relatively low, which may impact ease of trading.

Bid-Ask Spread

The bid-ask spread may be wider than more liquid ETFs, indicating potentially higher trading costs.

Market Environment Factors

Economic growth, geopolitical tensions, increasing cybersecurity threats, and advancements in robotics and AI are all affecting XKFS's performance.

Growth Trajectory

The growth trajectory depends on the increasing demand for security technologies and the ETF's ability to capture emerging trends. Changes to holdings will reflect shifts in the focus of future security technologies.

Competitive Edge

XKFS's competitive advantage lies in its broader definition of future security, encompassing cybersecurity, border security, and robotics, providing diversification across different aspects of the security landscape. It utilizes the Kensho index methodology, which aims to identify companies involved in innovative sectors. This approach allows it to capture companies that may not be easily classified within traditional sector definitions. While AUM is low, the specialized focus offers unique exposure.

Volatility

Volatility will reflect the broader market and the specific sectors in which it invests, such as technology, which can be volatile.

Market Risk

Market risk includes the potential for declines in the overall stock market, as well as sector-specific risks related to the security industry, such as changing government regulations and technological obsolescence.

Ideal Investor Profile

The ideal investor is someone seeking exposure to the future security industry, willing to accept moderate risk, and interested in a diversified approach to this sector.

Market Risk

XKFS may be best for long-term investors seeking thematic exposure, rather than active traders due to lower trading volume.

The SPDR Kensho Future Security ETF provides exposure to companies involved in innovative security solutions, including cybersecurity, border security, and robotics. Its smaller AUM and lower liquidity may make it less suitable for active traders, but it can serve as a niche thematic investment for long-term investors seeking diversification. The expense ratio is moderate, and the ETF's performance is tied to the success of the underlying Kensho Future Security Index. Investors should consider the potential risks and rewards before investing.

Data Sources:

• State Street Global Advisors
• ETF.com
• Morningstar
• Kensho Indexes

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change rapidly, and past performance is not indicative of future results.