A Broad Approach to Innovative Trends Helps This SPDR ETF Outperform
The SPDR S&P Kensho New Economies Composite's bets on transformational technologies have sparked volatility – and big gains – this year.
Two years ago, we removed a thematic fund focused on alternative energy from the Kiplinger ETF 20, the list of our favorite exchange-traded funds, and replaced it with the SPDR S&P Kensho New Economies Composite ETF (KOMP), which spreads its bets across a variety of new-new things, including green energy, drones, smart homes and electric vehicles.
Since then, the Kensho ETF has returned a cumulative 25.7%. That doesn't beat the S&P 500, which has gained 45.0%, but it's far better than the cumulative 39.6% decline in the Invesco WilderHill Clean Energy ETF (PBW), the fund that the Kensho ETF replaced. In other words, a more diversified approach to investing in innovative technology, products and services has paid off.
The list of Kensho New Economies' top 10 holdings is loaded with stocks that have more than doubled in price over the past 12 months, including aerospace firms Elbit Systems (ESLT), up 136%, and Kratos Defense & Security Solutions (KTOS), up 187%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Aerospace and defense firms, at 9% of assets, are the fund's biggest sector, followed by application software companies and firms that make electronic equipment and instruments.
Investors need to buckle up
Make no mistake: This index fund can still be volatile. Over the past 12 months, Kensho New Economies has been 60% more volatile than the S&P 500. From the start of 2025 through early April, worries about a trade war dragged the fund down 19.5% – a bigger decline than in the broad market benchmark.
But since April, investors have largely pushed aside any qualms related to tariffs, and growth stocks have begun to dominate the U.S. stock market again. Since the market's April 8 nadir, Kensho New Economies has soared 43%. That's well ahead of the S&P 500, which returned 30%.
And some of the fund's worst performers during the early 2025 swoon are now its biggest gainers, including Ouster (OUST), an electronic component company, which has risen 332% since early April, and communications equipment firm Viasat (VSAT), which has climbed 320%.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
4% and Chill? Find Out If This Distribution Rule Fits Your RetirementTake this simple quiz to discover whether the 4% Rule will work for you in retirement.
-
Oregon Tax Kicker in 2026: What's Your Refund?State Tax The Oregon kicker for 2025 state income taxes is coming. Here's how to calculate your credit and the eligibility rules.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market Today
The tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
Yes, Artificial Intelligence Stocks Are BoomingIt's fair to ask about the latest tech boom, "Is it really different this time?"
-
I'm an Estate Planning Attorney: These Are the Estate Plan Details You Need to Discuss (And What to Keep Private)Gen Xers and Millennials would like to know if they're going to inherit (and how much), but Baby Boomers in general don't like to talk about money. What to do?
-
I'm a Financial Adviser: This Is How You Can Minimize the Damage of Bad Market Timing at RetirementPoor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.
-
'You Owe Me a Refund': Readers Report Challenging Their Attorneys' BillsThe article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
7 Questions to Help Kick Off an Estate Planning Talk With Your ParentsIt can be hard for aging parents to discuss estate plans — and for adult kids to broach the topic. Here are seven questions to get the conversation started
