State Street SPDR S&P Kensho Future Security ETF

FITE

Market cap $144M

New Chinese AI Model Kimi K3 is raising questions for established players. Investors are questioning whether AI industry still has pricing power.

The SPDR S&P Kensho Future Security ETF has a balanced portfolio of 65 stocks focused on defense and cybersecurity. FITE has interesting cash flow characteristics and has marginally outperformed the broad stock market since its inception. Nonetheless, it trails leading defense and cybersecurity ETFs.

Buying the dip has been a successful strategy for decades. While the macro environment may create fear, history often shows that not investing during a market downturn is a missed opportunity.

During 2023, the higher rate environment was a source of competition for the equity income category.