KOMP: Add This ETF For Technology Themed Exposure

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jamesteohart/iStock via Getty Images Thesis The SPDR S&P Kensho New Economies Composite ETF (NYSEARCA:KOMP) presents investors with a compelling avenue to engage in the Fourth Industrial Revolution, ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKOMP: Add This ETF For Technology Themed Exposure\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-08 11:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4690547-komp-add-this-etf-for-technology-themed-exposure><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>jamesteohart/iStock via Getty Images Thesis The SPDR S&P Kensho New Economies Composite ETF (NYSEARCA:KOMP) presents investors with a compelling avenue to engage in the Fourth Industrial Revolution, ...</p>\n\n<a href=\"https://seekingalpha.com/article/4690547-komp-add-this-etf-for-technology-themed-exposure\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4550","symbol_name":"红杉资本持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4690547-komp-add-this-etf-for-technology-themed-exposure","article_id":"2433796660","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1479215103/image_1479215103.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2433796660","pubTimestamp":1715140252,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"jamesteohart/iStock via Getty Images Thesis The SPDR S&P Kensho New Economies Composite ETF (NYSEARCA:KOMP) presents investors with a compelling avenue to engage in the Fourth Industrial Revolution, t","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4550":"红杉资本持仓","BK4544":"ARK ETF合集","BK4585":"ETF&股票定投概念","FDN":"First Trust Dow Jones Internet I","ARKK":"ARK Innovation ETF","KOMP":"SPDR S&P Kensho New Economies Composite ETF","BK4588":"碎股"},"translate_title":"KOMP：将此ETF添加到技术主题敞口","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARKK":1,"FDN":1,"KOMP":1},"content_text":"jamesteohart/iStock via Getty Images Thesis The SPDR S&P Kensho New Economies Composite ETF (NYSEARCA:KOMP) presents investors with a compelling avenue to engage in the Fourth Industrial Revolution, tracking the dynamic S&P Kensho New Economies Index. This innovative index mirrors the evolving landscape of industries driving technology evolution, and spanning diverse themes like alternative finance, digital health, and space exploration. Through meticulous subsector indices compilation, KOMP provides exposure to forward-thinking technology sectors, emphasizing U.S.-listed companies and employing a modified equal-weighted methodology. KOMP is not a sole solution for a portfolio but remains an appealing choice for those seeking growth-oriented investments amidst transformative technological trends. Integrating KOMP into a portfolio of other asset classes could help create better technology portfolio exposure and drive returns in the future. Introduction The SPDR S&P Kensho New Economies Composite ETF offers investors a unique opportunity to participate in the Fourth Industrial Revolution through its tracking of the S&P Kensho New Economies Index. This innovative index is designed to capture the evolving landscape of industries and technologies driving the Fourth Industrial Revolution, focusing on themes such as alternative finance, distributed ledger technology, space exploration, digital health, electric vehicles, robotics, clean energy, smart grids, 3D printing, and more. By compiling various subsector indices, KOMP provides investors with exposure to forward-thinking themes in the technology sector, making it an attractive option for those seeking tech-focused investments across diverse and impactful themes. Analysis Index Eligibility/Methodology The S&P Kensho New Economies Index applies varying criteria for inclusion, with a minimum market capitalization threshold of $100 million. The index encompasses a blend of small to large-cap holdings and excludes OTC markets. The eligibility is restricted to securities listed on developed or emerging market exchanges, mitigating the risk associated with frontier markets. Each subsector within the index is meticulously defined, with a focus on identifying relevant business activities through scrutiny of SEC filings. These subsectors are then aggregated into broader sectors such as human evolution, global democratized banking, smart transportation, intelligent infrastructure, final frontiers, and clean power. Additionally, investors can access specific sectors through dedicated ETF products, such as tickers like SIMS, ROKT and CNRG. The index adopts a nuanced approach by categorizing constituents into \"core\" and \"non-core\" holdings, allocating greater weight to companies aligned closely with the index objectives. Furthermore, the index undergoes annual reconstitution and semi-annual rebalancing to ensure alignment with evolving market dynamics. ETF Characteristics KOMP has multiple characteristics that make it unique. The universe that is selected for this ETF is based only on U.S. listed companies, and the index uses a modified equal weighted methodology. As of April 30th, KOMP had 435 holdings with varying market capitalizations; however, the largest holding only has a 1.6% weighting and the largest 10 holdings are ~12% of the index. Top 10 holdings - May 03 (State Street SPDR) Fundamentally speaking, the index has a projected P/E ratio of ~18.6 with a projected 3-5 year EPS growth rate of 18.6%, a P/B of ~2.4, and a 30-day SEC yield of 0.94%. The fund has a gross expense of ratio of 0.2%, doesn't have options, and issues dividends quarterly. The geographical breakdown is 84% U.S., 3% China, and small percentages as a mix of other countries like Canada, Israel, Hong Kong, Brazil, etc. The fund's top sectors are Application Software, Aerospace & Defense, and Semiconductors. KOMP Top Sectors - Q1 2024 (SPDR) As of 31 March, the fund also has short-term investments of ~179M split between money market funds and a State Street short-term securities trust leveraging the firm by ~10% which is tied up in security positions resulting in a ~1.7B net book value. Performance Reviewing the 5-year historical performance, we can see that KOMP has had a commendable ~40% return, though it has underperformed the SPY and QQQ. As a better benchmark, it has vastly outperformed a similar ETF concept (ARKK) which demonstrates its resilience and sustainable growth. Looking deeper at the graphic, we can see how KOMP actually outperformed SPY and QQQ for a few periods, ultimately being driven back down by economic pressures. KOMP vs. SPY vs. QQQ vs. ARKK (Seeking Alpha) Providing more context, KOMP has had a ~10% return annualized since inception, which is a strong performance overall considering the growth focused nature and innovative context to its index. KOMP Performance (S&P Global) Takeaways/Application When considering an investment like KOMP, it is important to understand that this tool is meant to augment a portfolio through exposure to growth-oriented themes. Having a well-diversified growth focused ETF that is focused on new technologies and trends is applicable and forward looking. Combining this with other positions can help gain portfolio exposure where it may be lacking, or as a better solution to thematically similar but less disciplined ETFs. The parameters that are set within the ETF for position sizing help to mitigate some of the subjectiveness of portfolio managers. In addition, the more passive aspect of the fund and lower expense ratio make it more accessible and appealing for long-term investors. There is also a small dividend that is likely to grow as the life-cycle of the positions progresses, this could be a strong compounding facet of the fund moving forward, helping drive upwards price actions and capital gains growth as well. The diversity of firm size and sector is also very appealing, as well as the U.S. geographical dominance. This allows for an ETF to augment other holdings such as broad market, large cap international, and fixed income positions as well as gain exposure to those market size trends whether it is large, mid, or small capitalization. When considering the negative aspects, the biggest factors are the volatility, the high turnover ratio, and lack of options access. The volatility aspect is a double-edged sword, but the ETF has historically been more volatile and not performed well enough for that excess risk. The high-turnover is not ideal due to higher costs, taxable events, tracking error, and overall more uncertainty for investors. The lack of options access also limits the strategic moves that investors can take for their portfolios. There are other risks associated with an ETF such as KOMP. Investors should consider the speculative nature of the smaller size firms and the heavy need for capital of thematic investments such as this in a higher interest rate environment. There are likely to be pressures on these firms at varying levels, and it could ultimately hurt the returns on KOMP. Conclusion  KOMP offers investors a unique opportunity to participate in the Fourth Industrial Revolution through its tracking of the S&P Kensho New Economies Index. This innovative index captures the evolving landscape of industries and technologies driving the Fourth Industrial Revolution, focusing on themes such as alternative finance, digital health, electric vehicles, and more. KOMP provides exposure to forward-thinking themes in the technology sector through various subsector indices, with stringent eligibility criteria ensuring a well-curated portfolio. Notably, KOMP stands out for its focus on U.S. listed companies, its diversification, and its modified equal-weighted methodology. Despite commendable historical performance, investors should be mindful of certain risk factors. KOMP remains an attractive option for investors seeking exposure to growth-oriented themes and innovative technologies within a well-diversified ETF framework.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2433796660"}