As the world advances, new innovative technologies are being developed, opening a potential growth opportunity for exchange traded fund investors.
“We are on the cusp of basic structural change,” John Van Moyland, Head of Financial Products at Kensho, said at the Charles Schwab IMPACT 2018 conference. “The common vernacular is the ‘fourth industrial revolution’ – call it whatever you want.”
“They are driving a wave of innovation across many industries, and this is the important part. This isn’t just a technology conversation. Technology may be a catalyst, but actually, this is a pervasive change across everything from power generation, to the ways you travel, to the buildings we live in, how long you live – genetic engineering, and even the commercialization of space,” Moyland added.
Investors who are interested in gaining exposure to this fourth industrial revolution may now look to a number of specialized ETF strategies. For example, the SPDR Kensho Intelligent Structures ETF (NYSEArca: XKII), SPDR Kensho Smart Mobility ETF (NYSEArca: XKST) and SPDR Kensho Future Security ETF (NYSEArca: XKFS) can help investors focus on the potential growth opportunity in next-generation technologies.
The Kensho Intelligent Structures ETF follows companies whose products and services are driving innovation behind intelligent infrastructure, such as smart building infrastructure, smart power grids, intelligent transportation infrastructure, and intelligent water infrastructure.
The Kensho Smart Mobility ETF includes companies whose products and services are engaged in smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems.
The Kensho Future Security ETF tracks companies involved with innovation behind future security, which includes the areas of cyber security and advanced border security, along with military applications like robotics, drones and drone technologies, space technology, wearable technologies and virtual or augmented reality activities.
Additionally, the broader SPDR Kensho New Economies Composite ETF (NYSEArca: KOMP), which includes “New Economy” industries, ranging from 3D printing to genetic engineering, can provide investors access to a comprehensive and diversified set of companies propelling the new economy.
For more market-related commentary from Tom Lydon and other industry experts, visit our ETF Trends video category.