The Final Frontier Has Its Own ETF
Space is often referred to as the final frontier. That frontier has an exchange traded fund to call its own.
As part of a broader expansion of its suite of ETFs tracking Kensho indexes, State Street Global Advisors (SSgA) launched the SPDR Kensho Final Frontiers ETF (NYSE: XKFF) on Tuesday.
What Happened
The SPDR Kensho Final Frontiers ETF is one of three new ETFs launched by SSgA, the third-largest U.S. ETF issuer, on Tuesday. The other new funds are the SPDR Kensho New Economies Composite ETF (NYSE: KOMP) and the SPDR Kensho Clean Power ETF (NYSE: XKCP).
The original Kensho-based ETFs, which debuted last December, are the SPDR Kensho Future Security ETF (NYSE: XKFS), SPDR Kensho Intelligent Structures ETF (NYSE: XKII) and the SPDR Kensho Smart Mobility ETF (NYSE: XKST). Those funds have about $21 million in combined assets under management.
Why It's Important
The SPDR Kensho Final Frontiers ETF targets the Kensho Final Frontiers Index, which employs artificial intelligence and a quantitative weighting methodology to capture companies whose products and services are driving innovation behind the exploration of the final frontiers, which includes the areas of outer space and the deep sea, according to SsgA.
That new ETF holds 31 stocks, nearly 69 percent of which are aerospace and defense stocks. XKFF's top 10 holdings include Dow components Boeing Co. (NYSE: BA) and United Technologies Inc. (NYSE: UTX). Fund fees are 0.45 percent per year for the new fund.
The SPDR Kensho New Economies Composite ETF follows the Kensho New Economies Composite Index. That benchmark includes companies with exposure to the artificial intelligence, automation, power processing and robotics industries.
KOMP holds 301 stocks, with over 19 percent allocated to aerospace and defense names. Various healthcare industries combine for approximately 20 percent of the fund's weight. KOMP charges 0.20 percent per year, or $20 on a $10,000 stake.
What's Next
The SPDR Kensho Clean Power ETF targets the Kensho Clean Power Index. That benchmark uses artificial intelligence and a quantitative weighting methodology to capture companies whose products and services are driving innovation behind the clean energy sector, which includes the areas of solar, wind, geothermal, and hydroelectric power, according to SsgA.
XKCP holds 44 stocks, the bulk of which are split between utilities and semiconductor names. That new ETF charges 0.45 percent annually, or $45 on a $10,000 investment.
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