State Street SPDR S&P Kensho New Economies Composite ETF (KOMP) seeks to track the S&P Kensho New Economies Composite Index, which measures companies driving transformative innovation across artificial intelligence, robotics, space technology, autonomous vehicles, and other emerging technology sectors that are reshaping the global economy.
How It Works
KOMP uses a passively managed, modified market-capitalization-weighted approach that tracks its benchmark index. The fund selects companies based on Kensho's artificial intelligence-driven analysis that identifies firms generating significant revenue from new economy themes. Holdings are weighted by market cap with adjustments for liquidity and investability factors. The portfolio is rebalanced quarterly to maintain alignment with evolving innovation trends and index methodology changes.
Key Features
- AI-powered stock selection using Kensho's machine learning algorithms to identify true innovation leaders beyond traditional sector classifications
- Exposure to transformative technologies including space exploration, quantum computing, and advanced manufacturing often missed by broad tech ETFs
- Launched in 2018 during innovation boom, providing access to companies at forefront of economic transformation
Risks
- This ETF can lose value significantly during technology sell-offs, as innovation stocks often decline 40-60% faster than broad markets during corrections
- Concentrated exposure to speculative growth companies means earnings disappointments or regulatory changes could trigger sharp 20-30% single-day declines
- High correlation with growth stocks means prolonged underperformance during value-favoring market cycles, potentially lasting multiple years like 2000-2002 tech crash
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for aggressive growth investors with 7+ year time horizons and high risk tolerance. Appropriate for investors seeking concentrated exposure to disruptive innovation themes beyond traditional technology sector ETFs. Works well for younger investors building long-term wealth who can withstand significant volatility.