SPDR S&P Kensho Future Security ETF

SPDR S&P Kensho Future Security ETF (FITE) is a State Street index fund. It tracks the S&P Kensho Future Security Index, a basket of about 80 cybersecurity, defense and border-security stocks. Most cybersecurity ETFs stick to software, but FITE also holds military drone, space and robotics companies. It spreads its money thinly: as of June 30, 2026, no single holding was above 2%. Its 0.45% expense ratio matches the average of similar funds.

• Over the year to Oct 27, 2026, FITE returned +27.8%, 7th of 8 among similar funds.
• Its 5-year annualized return was +17.1%.
• In the 2020 COVID crash it fell 36.4% and regained its old high 8.3 months after the low.
• Its worst full calendar year was 2022 (-18.0%); its best was 2019 (+34.0%).
• The deepest fall in its price history was 36.9% (Jan 16, 2020 to Mar 20, 2020), recovered by Dec 3, 2020.

As of Jun 30, 2026, the fund held 79 securities; the ten largest made up 16.49% of assets. It also reported 8.35% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors added a net $9.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +10.77%, +23.46%, -3.91%.

FITE follows the S&P Kensho Future Security Index. That index combines several narrower S&P Kensho indexes. It takes every company in the Cyber Security and Smart Borders indexes. From the Robotics, Drones, Space, Wearables and Virtual Reality indexes, it takes only the military companies. The goal is to capture firms whose products protect networks, borders and critical infrastructure.

Stocks are picked by software, not by a manager. S&P Dow Jones Indices runs an automated scan of company filings with the SEC, such as the annual 10-K, looking for set search terms. It then drops companies whose products don't fit the index's purpose. Each company must also trade on a major US exchange, have a share price of at least $1, have a float market value of at least $100 million, and trade at least $1 million a day on average. Foreign companies can get in through US-listed shares. As of June 30, 2026, about 91% of assets were in US companies and 4% in Israeli ones.

State Street uses a "sampling" approach. It doesn't have to buy every stock in the index, only enough to match the index's overall behavior. At least 80% of assets must be in index stocks. The fund may use futures contracts to manage cash coming in and going out. As of June 30, 2026, the 10 largest positions made up just 16.49% of assets. Portfolio turnover, the share of holdings replaced over a year, was 28%.

• FITE charges 0.45% a year, versus an average of 0.45% for the similar funds below (3rd of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $46 in the first year and $567 over 10 years (assuming a 5% annual return).

FITE is a narrow theme fund that has swung harder than the broad market, so it fits best as a small add-on to a diversified core.

FITE adds growth-oriented exposure to cybersecurity and defense stocks, but it swings harder than the market. Its one-year beta was 1.56 as of October 27, 2026. Beta measures how much a fund tends to move when the market moves; anything above 1 means bigger swings. The fund launched in December 2017, so it has no 2008 record. In the 2020 COVID crash it fell 36.4% and took about 8 months to recover. In 2022 it dropped 22.6% and needed 14 months to get back to its peak. Its worst calendar year was 2022, at -17.85%. Anyone forced to sell in a slump like that would lock in losses. Income is minimal: the yield over the past 12 months was 0.1% as of October 27, 2026, paid quarterly. The SEC's standard example puts costs at $567 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.