Industry Updates

New listing: State Street enters outer space

David Tuckwell

a rocket flying through the air

State Street is listing three more thematic ETFs in partnership with boutique index provider Kensho Technologies.

  • SPDR Kensho Clean Power ETF (XKCP)

  • SPDR Kensho Final Frontiers ETF (XKFF)

  • SPDR Kensho New Economies Composite ETF (KOMP)

The Clean Power ETF tracks an index that uses word searches to scan the financial statements of all US-listed stocks in an attempt to identify those in the renewable energy business. The index committee then sorts companies as either 'core' or 'non-core' depending on how involved they are in renewable energy. As is fairly typical for thematic ETFs, the fund then runs a tiered index weighting system. The companies chosen are, at first, equally weighted. But then 20% of the non-core companies weight is given to the core companies. This gives greater weight to companies more involved in renewable energy.

The Final Frontier ETF (sounds cool doesn't it?) will invest in companies exploring deep sea and outer space - as well as those involved in other parts of the supply chain. It uses the same selection method and weighting method as the clean power ETF.

The New Economy ETF does much the same, only for companies that are "transforming the global economy through the use of existing and emerging technologies, and rapid developments in robotics, automation, artificial intelligence, connectedness and processing power."

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