SSGA partners with Kensho on three ‘new economy’ thematic ETFs on NYSE Arca

Jan 5th, 2018 | By | Category: Equities

State Street Global Advisors (SSGA) has teamed up with Kensho Technologies‘ index division for the launch of three ETFs on NYSE Arca designed to provide investors with access to US-listed equities of companies driving innovation in three so-called ‘new economy’ industries – intelligent structures, smart mobility, and future security.

SSGA launches three ‘innovative industry’ ETFs

Nick Good, co-head of the global SPDR business at SSGA.

Founded out of Harvard University in 2013 and backed by Goldman Sachs and Google Ventures, Kensho Technologies is a provider of next-generation analytics, machine learning, and data visualization systems.

The new ETFs, which are linked to Kensho New Economies Indices, serve as an extension to SSGA’s popular range of US sector ETFs but add more of a thematic play on disruptive technologies into the mix.

“We are continuously looking for opportunities to provide investors with the tools necessary for tapping into key market trends and new economic developments,” said Nick Good, co-head of the global SPDR business at SSGA.

“With the launch of [these funds] investors can make targeted allocations providing exposure to the firms behind the emerging trends that are reshaping our economy, and very way of life.”

The three ETFs are as follows:

  • The SPDR Kensho Intelligent Structures ETF (XKII US) tracks the Kensho Intelligent Infrastructure Index which focuses on companies providing advanced products and services in the areas of smart building infrastructure, smart power grids, intelligent transportation infrastructure, and intelligent water infrastructure.The index currently consists of 43 constituents with the largest sector exposures being semiconductors (15.0%), industrial machinery (14.2%), electronic equipment & instruments (10.5%), electrical components & equipment (9.2%), and industrial conglomerates (6.8%).
  • The SPDR Kensho Smart Mobility ETF (XKST US) tracks the Kensho Smart Transportation Index which focuses on companies providing advanced products and services in the areas of autonomous vehicles, drones and drone technology for civilian / commercial application, and advanced transport systems.The index currently consists of 35 constituents, and the largest sector exposures are to semiconductors (17.7%), automobile manufacturers (15.1%), auto parts & equipment (13.1%), construction machinery & heavy trucks (7.2%), and electronic equipment & instruments (7.1%).
  • The SPDR Kensho Future Security ETF (XKFS US) tracks the Kensho Future Security Index which focuses on companies operating in the areas of cyber security, advanced border security, and the following areas for military application: robotics, drones and drone technologies, space technology, wearable technologies and virtual or augmented reality activities.The index currently has 67 constituents with the largest sector exposures being dominated by aerospace & defense (34.0%), systems software (20.9%), and communications equipment (15.1%).

Each fund has a total expense ratio (TER) of 0.45%.

John van Moyland, co-head of financial products at Kensho, said, “We are delighted to be partnering with State Street as they launch ETFs tracking our pioneering New Economy indices. Not only is State Street one of the dominant providers of ETFs in the world today and a name synonymous with sector investing, they are also an organization committed to innovation and bringing differentiated products to market, making them a great strategic fit for Kensho.”

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