BOSTON--(BUSINESS WIRE)--State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), today announced the launch of three SPDR ETFs tracking Kensho New Economies indices. Designed to complement State Street Global Advisors’ existing sector and industry SPDR ETF suite, the new ETFs may help investors by providing both tactical and long-term innovative investment ideas with a transparent, rules-based approach.
The three ETFs, which track proprietary index methodologies developed by Kensho Technologies, a provider of next-generation analytics, machine learning, and data visualization systems, include:
· SPDR Kensho Intelligent Structures ETF (XKII)
· SPDR Kensho Smart Mobility ETF (XKST)
· SPDR Kensho Future Security ETF (XKFS)
“We are continuously looking for opportunities to provide investors with the tools necessary for tapping into key market trends and new economic developments,” said Nick Good, co-head of the Global SPDR business at State Street Global Advisors. "With the launch of XKII, XKST and XKFS, 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 SPDR Kensho Intelligent Structures ETF seeks to track the Kensho Intelligent Infrastructure Index. This index 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.
The SPDR Kensho Smart Mobility ETF seeks to track the Kensho Smart Transportation Index. This 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.
The SPDR Kensho Future Security ETF seeks to track the Kensho Future Security Index. This index aims to capture companies providing advanced products and services in 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.
John van Moyland, co-head of Financial Products at Kensho, added, “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.”
Having launched the first sector ETFs more than 19 years ago, State Street Global Advisors is a leading provider of both sector and industry ETFs. SSGA’s suite of US-listed sector and industry SPDR ETFs now includes 36 funds with more than $160 billion in assets as of December 21, 2017.
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 nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivaled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.
State Street Global Advisors is the investment management arm of State Street Corporation.
*Assets under management were $2.67 trillion as of September 30, 2017. AUM reflects approx. $36 billion (as of September 30, 2017) with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated. Please note that AUM totals are unaudited.
About Kensho Technologies
Kensho is an award-winning machine intelligence company founded out of Harvard University in 2013. Kensho's early team members came from veteran roles at Google, as well as from academia. Kensho applies AI for real-world impact across government and commercial institutions around the world.
For more information, visit www.kensho.com
Important Risk Information:
Concentrated investments in a particular sector or industry (technology sector and industrials sector) 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.
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.
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.
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.
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 and SPDR Kensho Future Security 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 which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com. Read it carefully.
Not FDIC Insured • No Bank Guarantee • May Lose Value