SSGA adds three ETFs to Kensho ‘new economy’ sector suite

Oct 23rd, 2018 | By | Category: Equities

State Street Global Advisors (SSGA) has expanded its line-up of ‘new economy’ sector ETFs with three new launches on NYSE Arca.

Kensho SPDR Technology sector ETFs

The ETFs provide access to sectors of the ‘new economy’ such as clean power and space exploration.

The ETFs track indices developed by machine intelligence company Kensho Technologies which provide exposure to innovative companies considered to be driving the ‘Fourth Industrial Revolution’ and ushering in the so-called new economy.

Kensho leverages artificial intelligence to analyze large amounts of company data to identify those firms that are tied to the ETF’s new economy sector.

The methodology selects those that are pure-play companies as well as those with significant exposure such as suppliers or service providers.

The SPDR Kensho New Economies Composite ETF (KOMP US) combines sixteen qualifying New Economy industries within a single fund; the SPDR Kensho Clean Power ETF (XKCP US) provides exposure to producers of clean power as well as developers of clean power technology; and the SPDR Kensho Final Frontiers ETF (XKFF US) provides exposure to firms driving the commercialization of space travel and deep sea exploration.

“Today’s technological innovations are not only changing the way we live and work, but are also creating actionable growth opportunities for investors, much like how the rise of personal computers spawned a new era of disruption,” said Noel Archard, Global Head of SPDR Product at State Street Global Advisors.

“With the addition of KOMP, XKCP and XKFF to SPDR’s suite of sector and industry ETFs, investors can access the potential for dynamic growth and economic disruption across infrastructure, transportation, cybersecurity, defence, energy, space exploration and more, all in a single trade.”

“The Kensho New Economies are designed to provide market participants with the most comprehensive view of the industries and innovation of the Fourth Industrial Revolution,” added John van Moyland, head of Financial Products for Kensho. “We are delighted that investors in the US will have the opportunity to gain exposure to more facets of this unprecedented period of change through our differentiated family of indices, including our flagship Kensho New Economies Composite Index and are pleased to continue our collaboration with State Street Global Advisors.”

KOMP is being offered with an expense ratio of 0.20% while the other two ETFs cost 0.45%. Dividends are paid quarterly from the funds.

SSGA first worked with Kensho Technologies in December 2017 when it launched three ETFs tracking indices developed by the firm. These initial funds – the SPDR Kensho Intelligent Structures ETF (XKII US), SPDR Kensho Smart Mobility ETF (XKST US) and SPDR Kensho Future Security ETF (XKFS US) – target companies driving innovation in the three new economy industries of intelligent structures, smart mobility, and future security and also command expense ratios of 0.45%.

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