State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the expansion
of 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, an award-winning 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 commercialization 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,” 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, defense, energy, space exploration
and more, all in a single trade.”
Kensho Technologies leverages alternative data and artificial
intelligence to identify and analyze 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 Economiessm 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,” said John van
Moyland, head of Financial Products for Kensho.
State Street Global Advisors has a long heritage of sector and
industry investing and is the longest tenured manager of sector
ETFs with the largest and most liquid suite of Sector and Industry
ETFs in the world1. The firm’s suite of sector and industry ETFs
now includes 40 funds with more than $175 billion in assets2.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are managed by
SSGA Funds Management, Inc., a registered investment adviser and
wholly owned subsidiary of State Street Corporation. The funds
provide investors with the flexibility to select investments that
are precisely aligned to their investment strategy. Recognized as
an industry pioneer, State Street created the first US listed ETF
in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the
forefront of responsible innovation, as evidenced by the
introduction of many ground-breaking products, including
first-to-market launches with gold, international real estate,
international fixed income, and sector ETFs. For more information,
visit www.spdrs.com.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the
world’s governments, institutions and financial advisors. With a
rigorous, risk-aware approach built on research, analysis and
market-tested experience, we build from a breadth of active and
index strategies to create cost-effective solutions. As stewards,
we help portfolio companies see that what is fair for people and
sustainable for the planet can deliver long-term performance. And,
as pioneers in index, ETF, and ESG investing, we are always
inventing new ways to invest. As a result, we have become the
world’s third largest asset manager with nearly US $2.81 trillion*
under our care.
* This figure is presented as of September 30, 2018 and includes
approximately $28 billion of assets with respect to SPDR products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
Important Risk Information
In general, ETFs can be expected to move up or down in value
with the value of the applicable index. Although ETF shares may be
bought and sold on the exchange through any brokerage account, ETF
shares are not individually redeemable from the Fund.
Investors may acquire ETFs and tender them for redemption
through the Fund in Creation Unit Aggregations only. Please see the
prospectus for more details.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Concentrated investments in a particular sector or
industry (technology sector and electronic media companies) tend to
be more volatile than the overall market and increases risk that
events negatively affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund’s shares to
decrease.
Equity securities may fluctuate in value in response to
the activities of individual companies and general market and
economic conditions.
Index-based funds hold a range of securities that, in the
aggregate, approximates the full Index in terms of key risk factors
and other characteristics. This may cause the fund to experience
tracking errors relative to performance of the index.
Foreign (non-U.S.) Securities may be subject to greater
political, economic, environmental, credit and information risks.
Foreign securities may be subject to higher volatility than U.S.
securities, due to varying degrees of regulation and limited
liquidity. These risks are magnified in emerging
markets.
Currency exchange rates between the U.S. dollar and
foreign currencies may have significant volatility and may cause
the value of the fund’s investments to decline.
When a Fund focuses its investments in a particular industry or
sector, financial, economic, business, and other developments
affecting issuers in that industry, market, or economic sector will
have a greater effect on the Fund than if it had not done so.
Non-diversified funds that focus on a relatively small
number of securities tend to be more volatile than diversified
funds and the market as a whole.
Foreign securities may be subject to higher volatility
than U.S. securities, due to varying degrees of regulation and
limited liquidity. These risks are magnified in emerging
markets.
Multi-cap investments include exposure to all market
caps, including small and medium capitalization (“cap”) stocks that
generally have a higher risk of business failure, lesser liquidity
and greater volatility in market price. As a consequence, small and
medium cap stocks have a greater possibility of price decline or
loss as compared to large cap stocks. This may cause the Fund not
to meet its investment objective.
Technology companies, including cyber security companies,
can be significantly affected by obsolescence of existing
technology, limited product lines, competition for financial
resources, qualified personnel, new market entrants or impairment
of patent and intellectual property rights that can adversely
affect profit margins.
Kensho Clean Power ETF
The SPDR Kensho Clean Power ETF seeks to track the Kensho Clean
Power Index. The Index is comprised of US-listed companies whose
products and services are driving innovation behind clean power.
Constituents include companies that produce products and services
related to renewable energy technology (solar, wind, hydro,
geothermal), or are a necessary component of their supply chain,
and companies that own or operate products and services related to
generating renewable energy or are a necessary component of their
supply chain.
Clean Power Companies Risk: Clean power companies may be
highly dependent upon government subsidies, contracts with
government entities, and the successful development of new and
proprietary technologies. Clean power companies may be affected by
competition from new and existing market entrants, obsolescence of
technology, short product cycles, changes in exchange rates,
imposition of import controls, and depletion of resources. In
addition, seasonal weather conditions, fluctuations in supply of
and demand for clean energy products or services, and international
political events may cause fluctuations in the performance of clean
power companies and the prices of their securities. Risks
associated with fluctuations in energy prices and supply and demand
of alternative energy fuels, energy conservation, the success of
exploration projects and tax and other government regulations can
significantly affect clean power companies.
Concentration Risk: When the Fund focuses its investments
in a particular industry or sector, financial, economic, business,
and other developments affecting issuers in that industry, market,
or economic sector will have a greater effect on the Fund than if
it had not done so.
Indexing Strategy/Index Tracking Risk: Index-based funds
hold a range of securities that, in the aggregate, approximates the
full Index in terms of key risk factors and other characteristics.
This may cause the fund to experience tracking errors relative to
performance of the index.
Kensho Final Frontiers ETF
The SPDR Kensho Final Frontiers ETF seeks to track the
performance of the Kensho Final Frontiers Index. The Index is
comprised of US-listed companies whose products and services are
driving innovation behind the exploration of deep space and deep
sea. Constituents include companies that produce products and
services that enable space travel and exploration or are a
necessary component of their supply chain and companies that
produce products and services to build robotic products and
subsystems or are a necessary component of their supply chain.
Aerospace and Defense Companies Risk: Aerospace and
defense companies can be significantly affected by government
aerospace and defense regulation and spending policies because
companies involved in this industry rely to a significant extent on
U.S. (and other) government demand for their products and services.
Thus, the financial condition of, and investor interest in,
aerospace and defense companies are heavily influenced by
governmental defense spending policies which are typically under
pressure from efforts to control the U.S. (and other) government
budgets.
Concentration Risk: When the Fund focuses its investments
in a particular industry or sector, financial, economic, business,
and other developments affecting issuers in that industry, market,
or economic sector will have a greater effect on the Fund than if
it had not done so.
Indexing Strategy/Index Tracking Risk: Index-based funds
hold a range of securities that, in the aggregate, approximates the
full Index in terms of key risk factors and other characteristics.
This may cause the fund to experience tracking errors relative to
performance of the index.
Kensho New Economies Composite ETF
The SPDR Kensho New Economies Composite ETF seeks to track the
performance of the Kensho New Economies Composite Index. The Index
is designed to capture US-listed companies whose products and
services are driving innovation and transforming the global economy
through the use of technology, robotics, automation, artificial
intelligence, connectedness and processing power. The Index
comprises the components included in each of the New Economy
Subsector Indexes developed by Kensho Technologies.
Concentration Risk: When the Fund focuses its investments
in a particular industry or sector, financial, economic, business,
and other developments affecting issuers in that industry, market,
or economic sector will have a greater effect on the Fund than if
it had not done so.
Indexing Strategy/Index Tracking Risk: Index-based funds
hold a range of securities that, in the aggregate, approximates the
full Index in terms of key risk factors and other characteristics.
This may cause the fund to experience tracking errors relative to
performance of the index.
KENSHO© is a registered service mark of Kensho Technologies Inc.
(“Kensho”), and all Kensho financial indices in the Kensho New
Economies© family and such indices’ corresponding service marks
have been licensed by the Licensee in connection with the SPDR
Kensho Intelligent Structures ETF, SPDR Kensho Smart Mobility ETF,
SPDR Kensho Future Security ETF, SPDR Kensho Clean Power ETF, SPDR
Kensho Final Frontiers ETF and SPDR Kensho New Economies Composite
ETF (collectively, the “SPDR ETFs”). The SPDR ETFs are not
marketed, sold, or sponsored by Kensho, Kensho’s affiliates, or
Kensho’s third party licensors.
Kensho is not an investment adviser or broker-dealer and Kensho
makes no representation regarding the advisability of investing in
any investment fund, other investment vehicle, security or other
financial product regardless of whether or not it is based on,
derived from, or included as a constituent of any Kensho New
Economies© family index. Kensho bears no responsibility or
liability for any business decision, input, recommendation, or
action taken based on Kensho indices or any products based on,
derived from, or included as a constituent of any such index. All
referenced names and trademarks are the property of their
respective owners.
Standard & Poor’s, S&P and SPDR are registered
trademarks of Standard & Poor’s Financial Services LLC, a
division of S&P Global (S&P); Dow Jones is a registered
trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and
these trademarks have been licensed for use by S&P Dow Jones
Indices LLC (SPDJI) and sublicensed for certain purposes by State
Street Corporation. State Street Corporation’s financial products
are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones,
S&P, their respective affiliates and third party licensors and
none of such parties make any representation regarding the
advisability of investing in such product(s) nor do they have any
liability in relation thereto, including for any errors, omissions,
or interruptions of any index.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, an indirect wholly owned
subsidiary of State Street Corporation. References to State Street
may include State Street Corporation and its affiliates. Certain
State Street affiliates provide services and receive fees from the
SPDR ETFs.
Before investing, consider the funds’ investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
1-866-787-2257 or visit spdrs.com. Read it carefully.
State Street Global Advisors Funds Distributors, LLC, member
FINRA, SIPC, 1 Iron Street Boston, MA 02210.
Not FDIC Insured - No Bank Guarantee - May Lose Value
Exp: 10/31/19
2281801.1.1.AM.RTL
1 Source: Morningstar as of 6/30/18. Based on total net assets
and sum of 90-day average daily volume of Morningstar US sector
categories.2 Source: Bloomberg Finance L.P. as of 9/30/2018
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version on businesswire.com: https://www.businesswire.com/news/home/20181023005732/en/
State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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