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Profit from the New Economy with These AI Powered ETFs

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  • (1:00) - The Fourth Industrial Revolution and The New Economy 
  • (3:40) - Company Selection and Weighting Strategy
  • (6:50) - SPDR Kensho Final Frontiers ETF: XKFF
  • (9:30) - Kensho Intelligent Structures ETF: XKII
  • (11:00) - Kensho Future Security ETF: XKFS
  • (13:00) - Kensho Smart Mobility ETF: XKST
  • (16:15) - Kensho Clean Power ETF: XKCP
  • (17:50) - Kensho New Economies Composite ETF: KOMP
  • (19:10) - How Can Investors Fit These ETFs In Their Portfolio?
  • (21:50) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I talk with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss State Street’s SPDR Kensho ETFs that are designed to benefit from trends emerging as part of the Fourth Industrial Revolution.

According to the World Economic Forum: “Today, we are at the beginning of a Fourth Industrial Revolution. Developments in genetics, artificial intelligence, robotics, nanotechnology, 3D printing and biotechnology, to name just a few, are all building on and amplifying one another. This will lay the foundation for a revolution more comprehensive and all-encompassing than anything we have ever seen.”

Kensho Technologies, a leading provider of next-generation machine learning and analytics, uses its natural language processing platform and proprietary algorithms to select the companies that are driving the new economy. Matthew walked us through how components are selected and weighted in these indexes.

The SPDR Kensho Final Frontiers ETF holds companies involved with space and deep-sea exploration. It’s the first ETF that invests in outer space. Could Pentagon’s plans to establish a “Space Force” benefit these companies?

The SPDR Kensho Intelligent Structures ETF focuses on smart building infrastructure, smart power grids, intelligent transportation infrastructure, and intelligent water infrastructure. Infrastructure is one of the few areas that may find bipartisan support in a split Congress.

The SPDR Kensho Future Security ETF holds companies driving technological innovations in future military and security applications, including cyber security, robotics, drones and drone technologies, space technology and virtual or augmented reality activities. How is this ETF different from traditional aerospace & defense ETFs?

The SPDR Kensho Smart Mobility ETF focuses on autonomous and connected vehicle technology, drones and advanced transportation tracking and transport optimization systems. Tesla (TSLA - Free Report) and Nvidia (NVDA - Free Report) are among its holdings.

The SPDR Kensho Clean Power ETF holds companies driving innovation in the clean energy sector. Investors seeking smart ESG investing options should take a look.

The SPDR Kensho New Economies ETF (KOMP - Free Report) invests in companies disrupting traditional industries by leveraging advancements in exponential processing power, artificial intelligence, robotics and automation.

We also discuss how investors should use these ETFs in their portfolio. How do these complement SSGA’s suite of traditional sector and industry ETFs? Find out on the podcast.

KOMP charges just 0.20% and each of the other five comes with an expense ratio of 0.45%, whereas most niche and thematic ETFs charge around 70-80 bps.

To learn more about these ETFs, please visit us.spdrs.com.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com

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