The Kensho Future Security ETF (FITE US) lets investors buy a basket of companies involved in next-generation security technologies. It seeks to track the S&P Kensho Future Security Index, which includes firms working on cybersecurity and smart borders, Robotics, drones, and autonomous systems. The ETF looks to back emerging security technologies, blending traditional defence names with firms at the forefront of cyber, drone, space, and AI innovation – all very hot and topical areas. Of the 81 companies currently held, the largest 5 holdings are Rocket Lab 2.5%, Krates Defence 2%, AeroVironment 2%, Viasat Inc 2%, and Planet Labs 1.76%.
- The FITE ETF has a relatively low 0.45% expense ratio to provide exposure to this rapidly evolving space.
The FITE is very much at the forefront of security, which becomes increasingly important in today’s online world. The ETF has tracked the Kensho Future Security Index extremely well, advancing +20.2% over the last 3 years compared to the index’s 20.4%.
- We are bullish on the FITE ETF, but some consolidation in the $US75-80 looks likely short-term.
