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 fund invests in companies focused on innovation and development within the security industry, encompassing areas like cybersecurity, robotics, drones, and space security.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable ETF provider with a long track record and a wide range of investment products.

Management Expertise

SSGA has extensive experience managing ETFs across various sectors and investment strategies, leveraging a team of professionals with expertise in index tracking and portfolio management.

Goal

To provide investment results that correspond generally to the total return performance of the Kensho Future Security Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Kensho Future Security Index, a rules-based index designed to capture companies involved in the future of security technologies.

Composition The ETF primarily holds stocks of companies involved in cybersecurity, robotics, drones, space security, and related innovative technologies.

Market Share: Unable to provide precise market share data due to the dynamic and segmented nature of the security technology ETF market.

Total Net Assets (AUM): 19.16

Key Competitors

• ROBO Global Robotics and Automation Index ETF (ROBO)
• iShares U.S. Aerospace & Defense ETF (ITA)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• First Trust Nasdaq Cybersecurity ETF (CIBR)

Competitive Landscape

The competitive landscape is characterized by ETFs focusing on robotics, automation, cybersecurity, and aerospace/defense. XKFS distinguishes itself with a broader focus on future security technologies, including less traditional areas like space security. A potential disadvantage is its smaller AUM and less established track record compared to larger competitors like ROBO and ITA. The advantage is its narrower security technology focus.

Historical Performance: Historical performance data is not directly available without current market data, but can be found on financial websites. Please refer to public sources for historical returns.

Benchmark Comparison: The ETF's performance should be compared against the Kensho Future Security Index to evaluate its tracking effectiveness. Please refer to public sources to compare the ETF's historical performance to its benchmark index.

Expense Ratio: 0.45

Average Trading Volume

The ETF's average trading volume is relatively low, indicating potentially lower liquidity compared to more popular ETFs.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions, but generally reflects the ETF's liquidity and may be wider than more liquid ETFs.

Market Environment Factors

Economic indicators, geopolitical risks, technological advancements, and cybersecurity threats influence the performance of XKFS. Increased investment in security technologies due to growing cyber threats, defense spending, and space exploration activities can drive demand for the ETF.

Growth Trajectory

Growth trends are tied to the expansion of the security technology sector. Changes in strategy and holdings would reflect adjustments in the underlying Kensho Future Security Index, capturing new trends and technologies in the security landscape.

Competitive Edge

XKFS holds a niche within security tech, differentiating from broader robotics and aerospace ETFs. The fund captures companies across cybersecurity, robotics, drones, and space security. Its focus on innovative security technologies helps it cater to investors looking at companies involved in the future of security. It is rules based so the portfolio holdings are chosen based on the index. The targeted approach and potential for high growth in these sub-sectors can attract investors.

Volatility

Historical volatility can be assessed based on past price fluctuations, but is not explicitly provided here.

Market Risk

Specific risks include technology risks, regulatory changes affecting the security industry, and reliance on the growth of innovative security technologies.

Ideal Investor Profile

The ideal investor is someone seeking targeted exposure to the future security technology sector, has a higher risk tolerance, and believes in the long-term growth potential of these innovative technologies.

Market Risk

XKFS is more suitable for long-term investors willing to accept sector-specific risks and potential volatility, rather than active traders seeking short-term gains.

SPDR Kensho Future Security ETF (XKFS) offers targeted exposure to innovative companies in the security technology sector. The ETF tracks the Kensho Future Security Index, providing exposure to cybersecurity, robotics, drones, and space security. Its relatively low AUM and focused strategy make it a niche play in the ETF market. While it offers growth potential, it's important to consider sector-specific risks and lower liquidity compared to larger, more diversified ETFs. This fund is a good fit for long-term investors with a higher risk tolerance who have conviction in the growth of future security technologies.

Data Sources:

• State Street Global Advisors (SSGA) website
• ETF.com
• Morningstar
• Other financial websites

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is estimated and may vary. Investment decisions should be based on individual circumstances and consultation with a financial advisor.