SPDR Kensho Future Security ETF (XKFS)

Overview

The SPDR Kensho Future Security ETF (XKFS) is an actively managed exchange-traded fund that seeks to invest in companies expected to benefit from advancements in future security technologies and concepts. Its focus spans areas like autonomous systems, robotics, cybersecurity, and advanced materials, aiming to capture long-term growth in disruptive industries. The ETF's asset allocation is primarily in equities, with a strategy that identifies companies with significant exposure to these forward-looking security themes.

Reputation and Reliability

State Street Global Advisors (SSGA) is a reputable and reliable issuer, known for its extensive experience in ETF creation and management, boasting a long track record in the financial services industry.

Management Expertise

The ETF is managed by SSGA Funds Management, Inc., which brings significant expertise in identifying and managing investments in innovative and growth-oriented sectors.

Goal

The primary investment goal of the SPDR Kensho Future Security ETF is to achieve capital appreciation by investing in companies positioned to benefit from the development and adoption of future security technologies.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, seeking to identify and invest in companies that are leaders or innovators in sectors related to future security. It does not aim to track a specific index but rather to build a portfolio based on Kensho's proprietary research and data analytics.

Composition The ETF primarily holds equities (stocks) of companies involved in areas such as artificial intelligence, autonomous vehicles, drone technology, cybersecurity, advanced sensor technology, and next-generation defense systems.

Market Share: Information on specific market share for niche ETFs like XKFS is often not publicly detailed in the same way as broad-market ETFs. Its market share is likely small compared to larger, more established ETFs.

Total Net Assets (AUM): 273143000

Key Competitors

• iShares Robotics and Artificial Intelligence Multisector ETF (ROBO)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• WisdomTree Artificial Intelligence and Innovation Fund (WTAI)

Competitive Landscape

The competitive landscape for ETFs focused on disruptive technologies like future security is dynamic and growing. Many ETFs track AI, robotics, or cybersecurity. XKFS's advantage lies in its specific focus on the intersection of these technologies with security applications, a potentially underserved niche. However, competitors may have larger AUM and broader investor bases, leading to potentially higher liquidity.

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Benchmark Comparison: As an actively managed ETF focusing on specific themes, XKFS does not directly track a standard index. Its performance should be evaluated against its stated investment objective and the performance of comparable actively managed funds or thematic indices in the future security space.

Expense Ratio: 0.45

Average Trading Volume

The ETF typically has a moderate average trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for the ETF is generally tight, suggesting efficient trading and minimal transaction costs for market participants.

Market Environment Factors

The ETF is influenced by advancements in AI, automation, cybersecurity threats, geopolitical tensions, and government spending on defense and security technologies. Growth in these underlying sectors is a key driver for its performance.

Growth Trajectory

The growth trajectory of XKFS is tied to the increasing adoption and innovation in future security technologies. As these sectors mature and expand, the ETF is poised for potential growth, with potential adjustments to its holdings based on emerging trends.

Competitive Edge

The SPDR Kensho Future Security ETF's competitive edge stems from its focused investment strategy on the convergence of advanced technologies and security applications, a niche that may offer differentiated growth potential. Its active management, powered by Kensho's data analytics, allows for dynamic adjustments to capitalize on emerging trends. This specific thematic focus can appeal to investors seeking exposure to the long-term secular growth story of future security innovations.

Volatility

The ETF's historical volatility is moderate to high, reflecting the inherently volatile nature of technology and growth stocks in emerging sectors.

Market Risk

Market risk for XKFS includes exposure to technology sector downturns, regulatory changes affecting defense and security industries, geopolitical instability, and the potential for rapid obsolescence of technologies. Concentration risk in a few key companies or sub-sectors is also a factor.

Ideal Investor Profile

The ideal investor for the SPDR Kensho Future Security ETF is one with a high-risk tolerance, a long-term investment horizon, and a belief in the growth potential of future security technologies.

Market Risk

This ETF is best suited for investors looking for concentrated exposure to innovative security technologies and who are willing to accept higher volatility for potentially higher growth. It is generally not recommended for conservative investors or those seeking broad market diversification.

The SPDR Kensho Future Security ETF (XKFS) offers focused exposure to companies at the forefront of future security technologies. Its active management and thematic approach aim for capital appreciation in rapidly evolving sectors like AI, cybersecurity, and robotics. While it carries higher volatility typical of growth-oriented ETFs, its specialized niche provides a unique investment opportunity for long-term investors with a strong risk appetite.

Data Sources:

• State Street Global Advisors (ETF Issuer)
• Financial Data Providers (e.g., Bloomberg, Morningstar - for performance and AUM data)
• Kensho Indices (for thematic research and methodology)

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. ETF performance can vary, and past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making investment decisions. Market share data for niche ETFs can be estimates and may fluctuate.