State Street Global Advisors has expanded its New Economy sector ETF lineup with the launch of the SPDR Kensho New Economies Composite ETF (KOMP), SPDR Kensho Clean Power ETF (XKCP) and SPDR Kensho Final Frontiers ETF (XKFF).
The new ETFs, which track proprietary index methodologies developed by Kensho Technologies, a machine intelligence company, are designed to provide investors with cost efficient, diversified access to the potential growth of innovative companies widely considered to be driving the Fourth Industrial Revolution and ushering in the new economy.
KOMP seeks to track an index that combines sixteen qualifying New Economy industries, ranging from 3D printing to genetic engineering, to provide investors access to a comprehensive and diversified set of companies propelling the new economy.
XKFF seeks to provide exposure to the commercialisation of space and deep sea travel and exploration while XKCP seeks to provide exposure to the clean power industry both in terms of generation and the underlying technology driving it.
“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,” says 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.”
Kensho Technologies leverages alternative data and artificial intelligence to identify and analyse large amounts of data, from companies that are developing the products and services driving the new economy, including those in the entire ecosystem, such as suppliers and service providers, in addition to the pure play companies. State Street Global Advisors first worked with Kensho Technologies in December 2017, when it launched three ETFs tracking indices developed by the firm: the SPDR Kensho Intelligent Structures ETF (XKII), SPDR Kensho Smart Mobility ETF (XKST) and SPDR Kensho Future Security ETF (XKFS).
“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. 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,” says John van Moyland, head of Financial Products for Kensho.
