How State Street Global Advisors' 3 New SPDR ETFs are helping Investors tap into Key Market Trends and New Economic Developments

Infrastructure
28.08.2018 08:49 am

Asset intelligence

State Street Global Advisors (SSGA) was launched to help investors face the future with increased confidence by helping them identify where growth is happening, understand key insights from large swathes of data, and better assess which functions are better outsourced.

State Street Global Advisors provides “asset intelligence”, and is responsible for more than 10% of the world’s assets. The firm has a 40-year-long history of developing solid and innovative investment strategies with a focus on reliability, transparency, reduced risk and cost-effectiveness.

Global Award Winners

As well as developing FinTech tools for investors, the firm also reports on cultural shifts and newsworthy trends to help investors stay ahead of change. Its global awards include Top Lender in the Global Investor/ISF Beneficial Owners Survey 2018 (February 2018), and the Best Securities Financing House in the Asia Asset Management Best of the Best Awards 2018 (January 2018), where it was also named Best Fund Administrator for Pooled Products and Best Securities.

State Street executives have recently been recognized as “Industry Leaders and for Commitment to Diversity and Inclusion”, having earned a perfect score on the Human Rights Campaign’s 2018 Corporate Equality Index.

Three New SPDR ETFs for Tracking Kensho New Economies Indices

Earlier this year, State Street Global Advisors launched three SPDR ETFs specifically designed to track the proprietary index methodologies developed by Kensho Technologies. Complementing SSGA’s existing sector and industry SPDR ETF suite, the Kensho ETFs are intended to provide investors with both tactical and long-term innovative investment ideas using a transparent and rules-based approach.

Kensho Technologies is a provider of next-generation analytics, machine learning and data visualization systems. The three ETFs are: SPDR Kensho Intelligent Structures ETF (XKII); SPDR Kensho Smart Mobility ETF (XKST); SPDR Kensho Future Security ETF (XKFS).

Nicholas Good, Co-head of SSGA’s Global SPDR business, says, “We are continuously looking for opportunities to provide investors with the tools necessary for tapping into key market trends and new economic developments.”

SPDR Kensho Intelligent Structures ETF (XKII)

This exchange-traded fund has been developed to track the Kensho Intelligent Infrastructure Index, which aims to capture companies providing advanced products and services in the areas of smart building infrastructure, smart power grids, intelligent transportation infrastructure, and intelligent water infrastructure.

SPDR Kensho Smart Transportation ETF (XKST)

Kensho’s Smart Transportation Index aims to capture companies providing advanced products and services in the areas of autonomous vehicles, drones and drone technology for civilian/commercial application, and advanced transport systems. This index is now being tracked by SSGA’s SPDR Kensho Smart Mobility ETF.

SPDR Kensho Future Security ETF (XKFS)

SSGA has also developed an ETF to track Kensho’s Future Security Index, an index designed to capture companies providing advanced products and services in the areas of cybersecurity, 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.

Emerging Trends that Are Reshaping Our Way of Life

According to Nicholas Good, the launch of the XKII, XKST and XKFS ETFs will mean “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 new SPDR ETFs are the latest addition to a comprehensive family of ETFs spanning an array of international and domestic asset classes.

Kensho’s Head of Financial Products John van Moyland, has this to say about the new ETFs:

“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.”

Fixed Income Leaders Summit APAC 2018

You can hear more on Portfolio Management: Capitalising on Fixed Income ETFs at Fixed Income Leaders Summit APAC 2018, this September at Sheraton Towers, Singapore. The session is part of Track B’s 2 part series:

Tuesday, September 18th 2018 @ 2.30pm: 360° Perspective: Evaluating the global adoption of fixed income ETFs – How are firms in the US, Europe and Asia executing ETFs to reap the full benefits they have to offer