3 New Kensho ETFs Debut
State Street Corp (NYSE:STT), the third-largest U.S. issuer of exchange traded funds, introduced three new ETFs Wednesday based on Kensho benchmarks.
“Kensho deploys scalable machine learning and analytics systems across the most critical government and commercial institutions in the world to solve some of the hardest analytical problems of our time,” according to the company's website.
The SPDR Kensho Intelligent Structures ETF (NYSE:XKII) follows the Kensho Intelligent Infrastructure Index. The index “is designed to capture companies whose products and services are driving innovation behind intelligent infrastructure, which includes the areas of smart building infrastructure, smart power grids, intelligent transportation infrastructure and intelligent water infrastructure,” according to SSgA.
The new ETF features exposure to 15 industry groups, including semiconductors, industrial conglomerates, software, building products, aerospace and defense. XKII charges 0.45 percent per year, or $45 on a $10,000 investment.
The SPDR Kensho Smart Mobility ETF (NYSE:XKST) tracks the Kensho Smart Transportation Index and is akin to a new-wave transportation ETF.
XKST's underlying index features companies with exposure to autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications and advanced transportation tracking and transport optimization systems.
The new ETF holds 35 stocks, about a third of which hail from the semiconductor and automobile industries. XKST's top 10 holdings combine for about 45 percent of the ETF's weight. The smart mobility ETF also charges 0.45 percent per year.
The SPDR Kensho Future Security ETF (NYSE:XKFS) tracks the Kensho Future Security Index. The index “is designed to capture companies whose products and services are driving innovation behind future security, which includes the areas of cyber security, 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,” according to SSgA.
XKFS holds 68 stocks, about 32 percent of which are aerospace and defense names. The new ETF also has an annual fee of 0.45 percent.
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