4 min readBy Beqa Bumbeishvili ETF Insider
DBJP VS HEWJ: Tracking and Exposure
DBJP and HEWJ offer investors distinct ways to access the Japanese equity market while managing currency risk. ETF Insider provides a valuable tool.
The State Street Global Advisors (SSGA)-advised funds, specifically the KOMP, aim to replicate the performance of the S&P Kensho New Economies Composite Index. Employing a sampling strategy, the fund may not purchase all securities in the index but seeks a subset with similar risk and return characteristics. The Fund typically invests at least 80% of its assets in index securities, using a combination of U.S.-listed equity securities, cash equivalents, and money market instruments. The Index, designed by S&P Dow Jones Indices LLC, comprises 25 underlying indexes, each focusing on specific sectors of New Economies companies. The selection of constituents is based on an automated scan of regulatory filings, with a proprietary algorithm determining Core or Non-Core categorization. The weight of each security is influenced by the relative weight of its underlying index, determined by average daily returns and standard deviation. Reconstitution and rebalancing occur in June and December, with evaluations for continued inclusion in December. As of December 15, 2023, the Index consisted of 437 securities, and it's noteworthy that the Index Provider is independent of both the Fund and the Adviser, establishing and maintaining rules for index composition and weightings.
The KOMP (State Street Global Advisors - advised funds) dividend strategy aligns with its objective of tracking the S&P Kensho New Economies Composite Index. While the primary goal is to replicate the index's performance, it's essential to note that dividends play a role in the fund's total return. As of the provided information, details about the specific dividend yield or distribution frequency are not explicitly mentioned. Typically, funds tracking broad market indexes, as KOMP does, may include dividend-paying stocks from various sectors. Investors seeking income through dividends may find KOMP to be a potential option, but they should review the fund's historical dividend performance and policies or consult the latest fund documentation for precise dividend-related details.
The KOMP (State Street Global Advisors - advised funds) employs a tracking strategy to mirror the performance of the S&P Kensho New Economies Composite Index. Utilizing a sampling approach, the fund is not obligated to purchase all the securities within the index but rather seeks to replicate its risk and return characteristics by investing in a subset of those securities. This strategy allows the fund to maintain efficiency while still closely aligning with the index's movements. The fund generally invests at least 80% of its total assets in the securities comprising the index, which includes U.S.-listed equity securities of companies domiciled across developed and emerging markets worldwide. Furthermore, the fund may invest in additional asset classes like cash, cash equivalents, money market instruments, and even use futures contracts to manage cash flows and enhance tracking performance. The index is reconstituted and rebalanced periodically, ensuring that the fund's holdings remain in line with the evolving composition of the S&P Kensho New Economies Composite Index.
The KOMP (State Street Global Advisors - advised funds) aims to closely correlate with the S&P Kensho New Economies Composite Index. The fund's objective is to replicate the performance of the index, and as such, it employs a tracking strategy to achieve a high degree of correlation. By investing in a subset of securities from the index, the fund endeavors to maintain a portfolio that mirrors the risk and return characteristics of the benchmark. The correlation between KOMP and the S&P Kensho New Economies Composite Index is a critical aspect for investors looking to align their investment goals with the index's movements, providing a means to potentially benefit from the broader trends and innovations within the New Economies companies represented by the index. Investors should consider the historical correlation and review periodic reports to assess the fund's effectiveness in tracking the index over time.
The KOMP (State Street Global Advisors - advised funds) demonstrates a sector focus through its tracking of the S&P Kensho New Economies Composite Index, which comprises 25 underlying indexes representing specific sectors within New Economies companies. The selection of constituents for each underlying index is based on an automated scan of regulatory filings, emphasizing products and services related to specific segments. The Index Provider categorizes companies as Core or Non-Core, with Core companies having products and services identified as principal components of their strategy. This approach allows KOMP to align its sector exposure with the innovative and transformative industries in the global economy, including those influenced by advancements in robotics, automation, artificial intelligence, connectedness, and processing power. Investors considering KOMP should assess the fund's sector allocations to understand its positioning within the New Economies landscape and evaluate its alignment with their investment objectives.
The KOMP (State Street Global Advisors - advised funds) offers exposure to the dynamic landscape of New Economies companies through its tracking of the S&P Kensho New Economies Composite Index. This exposure encompasses a comprehensive range of U.S.-listed equity securities, including depositary receipts, representing companies domiciled across developed and emerging markets worldwide. The index is strategically designed to capture enterprises driving innovation and transforming the global economy with existing and emerging technologies. KOMP's exposure extends to various sectors within New Economies, such as robotics, automation, artificial intelligence, connectedness, and processing power. The fund's investment strategy involves careful consideration of the constituents in the underlying indexes, emphasizing the selection of securities that align with the objectives of the S&P Kensho New Economies Composite Index. Investors seeking broad exposure to the evolving landscape of technological advancements and global economic transformation may find KOMP to be a suitable vehicle for capturing the potential growth of New Economies companies.
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4 min readDBJP and HEWJ offer investors distinct ways to access the Japanese equity market while managing currency risk. ETF Insider provides a valuable tool.
4 min readThe UMDD ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
5 min readThe EWH ETF (iShares MSCI Hong Kong ETF) offers several advantages for investors looking to gain exposure to the Hong Kong stock market. Firstly, it provides diversification across various sectors and industries within the Hong Kong market, reducing the risk associated with individual stock selection. Secondly, the ETF allows investors to participate in the growth potential of Hong Kong's vibrant economy, which serves as a gatEWAy to China and has a strong financial sector. Overall, the EWH ETF offers a convenient and cost-effective way to invest in Hong Kong's market and potentially benefit from its economic growth.
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