KOMP: Cheaper, Better Diversified Alternative To ARKK

Summary

• KOMP is a much smaller, less popular but also cheaper alternative to ARKK with a more profound depth of holdings and better risk dispersion.
• Instead of relying on the findings of a research analyst team, the S&P Kensho New Economies Composite Index uses an AI-powered natural language processing algorithm that screens publicly available financial data.
• The major sub-industries KOMP is focused on are semiconductors (8.6%), application software (6.9%), and automobile manufacturers (almost 6%).
• I am bullish on KOMP for the long haul as I am bullish on the Fourth Industrial Revolution, while I also acknowledge it will experience bouts of volatility in the coming weeks given the Fed's uncertain stance on interest rates and the prospects of tapering.

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Value investing endured a cold, too-long winter full of painful disappointments. But the striking first half of 2021 with its long-overdue value rotation helped past laggards to outshine their growth rivals and outstrip the broad market indices thanks to ultra-low interest rates

Analyst’s Disclosure:I am/we are long XOM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.