SPDR Kensho Future Security ETF (XKFS)

Overview

The SPDR Kensho Future Security ETF (XKFS) seeks to provide investment results that correspond generally to the total return performance of the Kensho Future Security Index. The index is designed to capture companies whose products and services are driving innovation behind future security which includes cybersecurity, robotics and automation for security purposes, advanced border security, and unmanned vehicles.

Reputation and Reliability

State Street Global Advisors (SSGA) is a reputable and reliable issuer, managing trillions of dollars in assets globally and has a long track record of providing ETF solutions.

Management Expertise

SSGA has a dedicated ETF management team with extensive experience in portfolio management, index tracking, and ETF operations.

Goal

The ETF aims 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 employs a replication strategy, attempting to hold all the securities in the Kensho Future Security Index in proportion to their weighting in the index.

Composition The ETF primarily holds stocks of companies involved in future security-related industries. It is concentrated in the technology and industrials sectors.

Market Share: XKFS's market share within the security-focused ETF segment is relatively small compared to broader market ETFs.

Total Net Assets (AUM): 39.37

Key Competitors

• ROBO Global Robotics and Automation Index ETF (ROBO)
• First Trust NASDAQ Cybersecurity ETF (CIBR)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Competitive Landscape

The ETF industry is highly competitive, with several players offering exposure to robotics, cybersecurity and other security related sectors. XKFS differentiates itself by focusing on future security as defined by the Kensho index. Advantages may include exposure to specific security sub-sectors; disadvantages may include lower AUM compared to larger competitors.

Historical Performance: Historical performance data should be gathered from official fund factsheets and financial websites over various periods such as 1-year, 3-year, 5-year and 10-year periods to analyze track record. Data not populated, as it requires real-time updates.

Benchmark Comparison: Comparison to the Kensho Future Security Index is essential to evaluate the ETF's tracking effectiveness. Data not populated, as it requires real-time updates.

Expense Ratio: 0.4

Average Trading Volume

The ETF's average trading volume is approximately 12,323 which suggests moderate liquidity. Data updated as of 2024-05-15

Bid-Ask Spread

The typical bid-ask spread is approximately 0.11% indicating a moderate cost for trading. Data updated as of 2024-05-15

Market Environment Factors

Economic indicators, growth in cybersecurity, increased automation adoption, and geopolitical events influence XKFS. Increased spending in defense, cyber and border control can affect XKFS.

Growth Trajectory

The growth trajectory is tied to increased security concerns worldwide and the adoption of future security technologies. Strategy and holding changes are minimal unless driven by the index methodology

Competitive Edge

XKFS's competitive edge lies in its focus on the Kensho Future Security Index, which aims to capture companies driving innovation in security. The ETF provides targeted exposure to firms developing advanced security technologies. A focus on innovative firms offers potential growth beyond traditional security companies. However, limited assets under management can present challenges.

Volatility

XKFS exhibits moderate volatility due to its concentration in technology and industrials sectors.

Market Risk

Market risk associated with XKFS includes sector-specific risks in technology and industrials and broader market fluctuations due to economic and geopolitical factors.

Ideal Investor Profile

The ideal investor for XKFS is someone seeking targeted exposure to the future security industry and is willing to accept moderate risk for potential long-term growth. Investors interested in cybersecurity, robotics, or defense may find the fund suitable.

Market Risk

XKFS is more suited for long-term investors with a specific interest in the future of security sector, rather than active traders or passive index followers looking for broad market exposure.

The SPDR Kensho Future Security ETF (XKFS) offers targeted exposure to companies involved in innovative security technologies. It aims to track the Kensho Future Security Index, focusing on areas such as cybersecurity, robotics, and border security. The fund may be suitable for long-term investors interested in the security sector, although its smaller AUM and moderate trading volume should be considered. The ETF is subject to sector-specific and market risks and is best suited for investors with a clear understanding of the future security landscape.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor. Market data is subject to change.