Mobility ETFs – XKST


The SPDR Kensho Smart Mobility ETF (XKST) was launched to the market at the end of last year/2017, “it focuses on smart transportation firms, which the index provider fines as those companies advancing products or services in the following areas: autonomous vehicle technology, drone transportation technology, and advanced transportation tracking and transport optimization systems. Each company is further classified as either “core” or “non-core,” depending on the level of involvement in innovative transportation. The index equally weights each stock, but then re-assigns 20% of the non-core firms’ weight equally to the core firms. As a result, pure plays are overweighted. For a transportation sector fund with a twist towards innovative technology, XKII is reasonably priced.” – according to the ETF.com description. 

The underlying index/benchmark is the Kensho Smart Transportation Index (the “Index”), which 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 Smart Transportation sector as determined by a classification standard produced by Kensho Technologies, Inc. The Index is designed to capture companies whose products and services are driving innovation behind smart transportation.

According to its methodology, the index is rules-based, reflecting advances in the transportation sector, composed of companies focused on autonomous and electric vehicle technology, commercial drones, and advanced transportation systems. The detailed steps are:

1. Identifying all securities from each of the following New Economy indices: Advanced TransportSystems (KATS), Autonomous Vehicles (KCARS), Drones (KDRONE), Electric Vehicles (KEV)

2. Eliminating securities that do not cohere with the Index Objectives

3. Eliminating duplicates from the resultant list of components derived in Step 24. Deriving the category for each component by assuming the same categorization as indicated in its original sub-index. If a component appears in multiple sub-indices and it has been categorized as “Core” in any of them, then that company will be categorized as “Core”, otherwise, it will be categorized as “Non-Core”

Then liquidy criteria is imposed:

  1. USD 100 million minimum market capitalization threshold as of the relevant Selection Day, where the market capitalization is calculated as the number of shares outstanding multiplied by the closing price
  2. USD 1 million minimum 3-month average daily traded value (ADTV) threshold as of the relevant Selection Day, where the 3-month ADTV is calculated as the average of the number of shares traded each day multiplied by that day’s volume-weighted average price (VWAP) over the 63 Trading Days prior to the relevant Selection DayThe Index is rebalanced to reflect the eligible securities selected for inclusion in the Index on the RebalanceDay immediately following each Selection Day.

XKST contains 56 components: 

Aerovironment Inc  Com
Tesla Inc  Com
Trimble Inc  Com
Rogers Corp  Com
Fortive Corp  Com
Wabco Holdings Inc  Com
Honda Motor Co Ltd  Ny Sh
Sirius Xm Holdings Inc  Com
Yandex Nv  Cl A
Borgwarner Inc  Com
Ford Motor Co  Com
American Axle & Mfg Holdings  Com
Gentherm Inc  Cl A
Aptiv Plc  Com
Avis Budget Group Inc  Com
Lear Corp  Com
Hertz Global Holdings Inc  Com
Nuance Communications Inc  Com
Plug Power Inc  Com
Heico Corp  Com
Rockwell Collins Inc  Com
Johnson Controls Intl Plc  Com
Calamp Corp  Com
Luxoft Holding Inc  Cl A
Toyota Motor Corp  Sponsored Adr
Ansys Inc  Com
Alphabet Inc  Cl A
Analog Devices Inc  Com
Orbcomm Inc  Com
Abb Ltd  Sponsored Adr
Royal Dutch Shell Plc  Spons Adr A
General Motors Co  Com
Texas Instruments Incorporated  Com
Intel Corp  Com
Comtech Telecommunications Corp  Com
Fiat Chrysler Automobiles Nv  Com
Modine Manufacturing Co  Com
Baidu Inc  Sponsored Adr
Solaredge Technologies Inc  Com
On Semiconductor Corp  Com
Nxp Semiconductors Nv  Com
Xperi Corp  Com
Arcelormittal Sa  Ny Reg Cl A
Ambarella Inc  Com
Visteon Corp  Com
Tata Motors Ltd  Sponsored Adr
Stmicroelectronics Nv  Ny Reg
Nvidia Corp  Com
Hyster Yale Materials Handling  Cl A
Ballard Power Systems Inc  Com
Orix Corp  Adr
Veoneer Inc  Com
Delphi Technologies Plc  Com
Ituran Location & Control Ltd Ord
Mix Telematics Ltd  Sponsored Adr
Iteris Inc  Com

The distribution across industries is

The yield to date is not boastful at -8.5% even the backtesting performance looked promising:

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