State Street Global Advisors (SSGA) has announced the launch of the SPDR FactSet Innovative Technology ETF (XITK) on the NYSE Arca.
It aims to offer investors an access to the technology sector and electronic media sub-sector by seeking to provide exposure to companies with high revenue growth, “including companies involved in cutting edge research, innovative product and service development, disruptive business models or a combination of these.”
The SPDR FactSet Innovative Technology ETF will track the FactSet Innovative Technology Index focusing on the performance of US listed stocks and American depository receipts (ADRs) of technology-related companies with high revenue growth.
The index tracks companies within the highest growth segments of the technology sector and the electronic media sub-sector of the media sector.
TER of the ETF is 0.45%.
Nick Good, chief operating officer of the US intermediary business at State Street Global Advisors, said : “In today’s low growth environment, investors have expressed a desire to access companies with the greatest potential to create change. XITK provides exposure to technology-related companies with high revenue growth, including those with disruptive business models.
“This means investing beyond the stalwarts of the tech space and capturing newer firms that are innovating and changing the landscape.”
“This FactSet index leverages our patented U.S. sector classification system to uniquely identify technology-related companies in new, rapidly evolving areas, such as mobile devices, cyber security and cloud computing,” explained Jeremy Zhou, FactSet Indexes senior product manager.
“Partnering with SSGA to track such potentially disruptive companies through a transparent, rule-based methodology may offer an exciting new way to target emerging industries with a stronger overall growth profile,” he added.