Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) is a passively managed exchange traded fund launched on October 22, 2018.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Aerospace & Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by State Street Investment Management. It has amassed assets over $200.69 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Aerospace & Defense segment of the equity market. ROKT seeks to match the performance of the S&P KENSHO FINAL FRONTIERS INDEX before fees and expenses.
The S&P Kensho Final Frontiers Index is comprised of U.S.-listed equity securities of companies domiciled across developed and emerging markets worldwide which are included in the Final Frontiers sector.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.27%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector -- about 71.8% of the portfolio. Information Technology and Energy round out the top three.
Looking at individual holdings, Planet Labs Pbc (PL) accounts for about 7.29% of total assets, followed by Intuitive Machines Inc (LUNR) and Iridium Communications Inc (IRDM).The top 10 holdings account for about 41.46% of total assets under management.
Performance and Risk
Year-to-date, the State Street SPDR S&P Kensho Final Frontiers ETF has added about 47.44% so far, and is up roughly 119.33% over the last 12 months (as of 05/25/2026). ROKT has traded between $56.938 and $125.39 in this past 52-week period.
The ETF has a beta of 1.03 and standard deviation of 23.13% for the trailing three-year period. With about 37 holdings, it has more concentrated exposure than peers.
Alternatives
State Street SPDR S&P Kensho Final Frontiers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ROKT is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index and the iShares U.S. Aerospace & Defense ETF (ITA) tracks Dow Jones U.S. Select Aerospace & Defense Index. Invesco Aerospace & Defense ETF has $8.06 billion in assets, iShares U.S. Aerospace & Defense ETF has $13.85 billion. PPA has an expense ratio of 0.58%, and ITA charges 0.38%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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State Street SPDR S&P Kensho Final Frontiers ETF (ROKT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).