A sound investment process and strong management team underpin SPDR® S&P Kensho Intelligent Strctr ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a high quality exposure is rooted in holding stocks that are consistently profitable, growing, and have solid balance sheets. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Acuity Brands

Itron

Parsons Corp

Badger Meter

Xylem

Johnson Controls

Pentair

Alarm.com

Tetra Tech

Resideo Technologies Inc

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. SPDR® S&P Kensho Intelligent Strctr ETF earns a High Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Respectable risk-adjusted performance also bolsters the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. The parent firm's five-year risk-adjusted success ratio of 58% supports the rating. The measure indicates the percentage of a firm's funds that survived and surpassed their respective category's median Morningstar Risk-Adjusted Return for the period. Their respectable success ratio suggests that this firm does well for investors and that this fund may benefit from that.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Intelligent Infrastructure Index.  Under normal market conditions, the fund generally invests substantially all, but at least 80%, and of its total assets in the securities comprising the index. The index is comprised of U.S.-listed equity securities (including depositary receipts) of companies domiciled across developed and emerging markets worldwide which are included in the Intelligent Infrastructure sector as determined by a classification standard produced by the index provider. 

 The portfolio is overweight in technology and industrials relative to the category average by 33.4 and 8.7 percentage points, respectively. The sectors with low exposure compared to category peers are utilities and real estate, underweight the average by 39.9 and 4.0 percentage points of assets, respectively. The portfolio is composed of 51 holdings and is about as top-heavy as the category average, with 30.7% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 31% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

High

Process

SPDR® S&P Kensho Intelligent Strctr ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are two managers listed on the fund: Kala O’Donnell, Mark Krivitsky. Together, they manage a total of two strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR S&P Kensho Intelligent Structures ETF

SIMS tracks an index of US-listed companies that focuses on innovative infrastructure.

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SPDR S&P Global Infrastructure ETF

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iShares US Infrastructure ETF

iShares Global Infrastructure ETF

FlexShares STOXX Global Broad Infrastructure Index Fund

KraneShares MSCI One Belt One Road Index ETF

Global X U.S. Infrastructure Development ETF

ProShares DJ Brookfield Global Infrastructure ETF

Global X Data Center REITs & Digital Infrastructure ETF

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KraneShares Electric Vehicles & Future Mobility Index ETF

SmartETFs Smart Transportation & Technology ETF

First Trust NASDAQ Clean Edge Green Energy Index Fund

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SPDR S&P Kensho Future Security ETF

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SPDR S&P Homebuilders ETF

SPDR S&P Software & Services ETF

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News for SPDR S&P Kensho Intelligent Structures ETF ETF (SIMS)