State Street Plans Three “New Economy” ETFs

ETF issuer State Street, which is well known for its SPDR line of funds, has filed to launch three new niche ETFs that hope to capitalize on the so-called “new economy.”

The funds will track indexes provided by firm known as Kensho, and include the following three ETFs:

  • SPDR Kensho Intelligent Infrastructure ETF,
  • SPDR Kensho Smart Transportation ETF, and
  • SPDR Kensho Future Security ETF

According to the SEC filing, all three of theses funds will track indexes of U.S.-listed companies that can be domiciled just about anywhere in the world, including emerging or developed markets. To qualify for inclusion in the indexes, components must have market caps of at least $100 million, along with three-month average daily trading volume value of $1 million (in other words, $1 million worth of shares must change hands on a daily basis, on average).

In terms of index makeup, stocks are grouped into two buckets: core and noncore. Components are weighted equally within each bucket, but the core portion is overweighted by a factor of at least 20%. They’ll be reconstituted annually and rebalanced semiannually.

Unfortunately, the filing did not expense ratios, listing exchange, or tickers.

State Street’s largest current fund, the SPDR S&P 500 ETF Trust (NYSE:SPY), was trading at $249.71 per share on Tuesday morning, up $0.50 (+0.20%). Year-to-date, SPY has gained 12.75%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 119 ETFs in the Large Cap Blend ETFs category.