State Street Plans 3 Niche Funds
Each ETF will track a fund covering companies that develop technological advances in different fields.
State Street Global Advisors has filed for three ETFs that will track three “new economy” niche indexes from a firm called Kensho. The funds included in the filing are as follows:
- SPDR Kensho Intelligent Infrastructure ETF
- SPDR Kensho Smart Transportation ETF
- SPDR Kensho Future Security ETF
Methodology
Aside from their specific areas of focus, all three track indexes of U.S.-listed companies that can be domiciled in either emerging or developed markets. Eligible components must have at least $100 million in market capitalization and a three-month average daily traded value of at least $1 million.
Each index sorts components into two buckets, core and noncore, with the components within each category weighted equally. The core portion of each portfolio is overweighted by a factor of at least 20% relative to the noncore portion. The indexes are reconstituted annually and rebalanced semiannually, according to the prospectus.
Areas Of Focus
The “Intelligent Infrastructure” fund’s index will target companies that implement and produce technology that represents advances or improvements in infrastructure systems that can be used in areas such as “smart” building infrastructure, power grids, transportation infrastructure and water infrastructure.
The “Smart Transportation” fund’s index will focus on technology and services that enhance transportation or transportation systems, including the areas of autonomous vehicles and commercial drones.
The “Future Security” fund targets companies providing advances and technology in the areas of weapons, defense and border security, including cybersecurity and military components, the prospectus said.
The filing did not include tickers, expense ratios or a listing exchange.
Contact Heather Bell at [email protected]
