State Street's SPDR S&P Kensho New Economies Composite ETF (KOMP) returned 8.5% over the past 12 months, trailing the S&P 500's 15.7% gain. The fund experienced three separate rallies that each fell roughly 15% after peaking.
KOMP invests in companies disrupting traditional industries through artificial intelligence, robots, and automation. Its holdings span electronic equipment and components, healthcare, industrials, semiconductors, and software. Tech stocks make up 39% of its assets.
The ETF has been roughly twice as volatile as the S&P 500 over the past three years. Some of its top 10 holdings performed well. Himax Technologies (HIMX), a chipmaker, climbed 62% over 12 months. Ouster (OUST), which makes 3D mapping sensors, rose 49%.
However, KOMP does not hold shares in some major S&P 500 gainers. Advanced Micro Devices (AMD) soared 278%, and Teradyne (TER), a semiconductor-testing equipment and industrial robotics maker, climbed 192% over the same period. Kiplinger notes that disruptive technologies can take years to pay off, and describes the fund as an aggressive, growth-oriented play suited for patient investors.