The HAIL ETF is a passive product designed to track the performance of the S&P Kensho Smart Transportation Index, which focuses on smart transportation innovation. Investors can examine the trends of companies involved in autonomous driving and connected vehicle technology, drones, and advanced transportation systems within a single product.

It is suitable for investors who are interested in industry shifts within the smart mobility theme, prefer index-based diversified exposure over individual stock selection, and can tolerate the volatility characteristic of the theme.

The ETF is managed by State Street using a passive (index-tracking) investment approach.

This product provides exposure to smart transportation equities by reflecting the performance of the index's constituent companies. Rather than actively selecting specific companies, it follows the index's classification system and periodic inclusion procedures, accepting both the opportunities of the theme and the broader volatility of the industry.

• Index-tracking structure focused on the smart transportation innovation theme
• Exposure covering autonomous driving and connected vehicles, drones, and advanced transportation

Assets under management (AUM) stand at $18.7M, with a total expense ratio of 0.45% annually.

Top holdings include MYMK, RCAT, DAN, STHH, and BWA. Because this composition can be exposed to individual volatility of smart mobility-related companies, investors should review business changes in constituent holdings and intra-theme correlations together.

The FNDX ETF covers fundamentally weighted large-cap stocks, the PRF ETF covers fundamentally weighted broad equities, the FNDA ETF covers fundamentally weighted small-cap stocks, the JHMM ETF covers multi-factor mid-cap stocks, and the RECS ETF covers an enhanced core strategy. These comparison products differ in expense ratio levels, asset size, and fund managers, so when comparing them with the HAIL ETF, investors should distinguish the purpose of theme exposure, expense burden, and portfolio scope rather than focusing solely on performance.

Before approaching the HAIL ETF, investors should review the role of theme exposure within their overall asset allocation, the distribution policy, and the concentration of constituent holdings. Because the smart transportation industry can be sensitive to the stage of technology development, regulation, and demand shifts, it is advisable to first clarify the long-term holding objective and the range of volatility tolerance.

Smart mobility can be sensitive to technology commercialization, regulation, the funding environment, and changes in automotive and transportation demand. Even with an index-tracking approach, exposure to a specific theme can lead to wider volatility than the broader market, and investors using a won-denominated base should also factor in currency fluctuations.

The HAIL ETF is a product that can be utilized when seeking to examine the smart transportation innovation theme through an index-tracking approach. However, because its purpose differs from broad market ETFs, the appropriate approach is to review theme concentration-related volatility, quarterly distributions, expense burden, and constituent composition together before determining the role it plays within the portfolio.