This is a passive ETF that tracks the S&P Kensho New Economies Composite Index. Using a Sharpe ratio weighting method, it covers 22 new economy subsectors, including artificial intelligence, space, drones, autonomous driving, robotics, clean energy, and fintech.

It suits investors who want broad, even diversification across the new economy rather than exposure to a single theme.

State Street (SSGA) launched the fund in 2018, and it is managed passively (index tracking).

Kensho's natural language processing based artificial intelligence screens corporate filings to select companies for inclusion in the new economy sectors. A key feature is that the 22 sub-indexes are weighted by Sharpe ratio, giving higher weights to themes with better risk-adjusted returns.

• Combines 22 new economy subsectors selected by Kensho's NLP-based artificial intelligence
• Weighting based on Sharpe ratio rather than simple market capitalization

Assets under management (AUM) stand at $2.6B, and the expense ratio is 0.20% per year.

Compared with similar single-theme ETFs, KOMP does not concentrate on a specific sector and instead spans the new economy theme as a whole. Comparison funds such as XT, MOO, and DAPP each focus on a specific area, such as technology, agriculture, or blockchain, whereas KOMP covers 22 subsectors at once and is designed to spread out thematic concentration risk.

New economy thematic ETFs as a group tend to react sensitively to the interest rate environment and sentiment toward tech stocks. Returns tend to improve when growth-theme leading sectors such as artificial intelligence, space, and fintech are strong, while in periods of rising interest rates, the high-growth nature of these themes can put pressure on valuations.

Fund inflows tend to stand out when interest in innovative technology themes is rising. When multiple themes such as artificial intelligence, space, and clean energy draw attention at the same time, the fund tends to have a more stable base of inflows than single-theme ETFs.

Its strength is diversification across new economy themes, while its weakness is relatively high volatility due to a large weighting in small-cap and growth stocks.

XT, shown in the table, is a global tech and innovation theme ETF that takes a similar diversified approach, DAPP specializes in blockchain and fintech, and MOO specializes in agricultural technology. Within the same Kensho index family, there are also sub-theme ETFs such as ROKT, which focuses on the space theme, and CNRG, which focuses on clean energy. If you are looking for broad innovation themes, ARKK from ARK Invest is also worth comparing.

These are the key points to check before investing in KOMP. Diversification across new economy themes is a strength, but given the nature of growth stocks, volatility, fee level, and currency exposure should be reviewed in advance.

Although the fund offers a diversified structure that combines 22 new economy themes, the diversification benefit may be limited when the themes weaken together. Because of its growth and small-cap characteristics, volatility is high during market corrections, and you should also consider regulatory risk for individual themes and uncertainty over technological maturity.

It is a suitable option for investors who want integrated exposure in one product instead of splitting new economy themes across separate ETFs. If you want to participate in the growth of the new economy as a whole rather than concentrating on a single theme, it is worth considering, and it is important to confirm your tolerance for fees and volatility as well.