State Street Global Advisors Expands Sector Offerings With Launch of Three New Economy SPDR Kensho ETFs

Tuesday, October 23, 2018 9:20 am EDT

Dateline:

BOSTON

Public Company Information:

NYSE:
STT
US8574771031
"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"

BOSTON--(BUSINESS WIRE)--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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State Street Corporation
Andrew Hopkins, +1 617-664-2422
Ahopkins2@StateStreet.com

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