Virgin Galactic’s Unity spacecraft arrives in space for the first time.
Source: Virgin Galactic
Ark Invest, which operates the largest actively managed exchange-traded fund, plans to add a “Space Exploration ETF” under the ARKX ticker, according to a bond file on Wednesday.
Although ETF constituents have yet to be announced, the shares of space companies Virgin Galactic and Maxar Technologies each jumped more than 8% on the floor.
Ark Invest is coming out of an extremely successful 2020, with its main innovation fund ARK returning over 170% last year and a growth in assets under management to $ 17 billion. The fund’s largest share is electric car maker Tesla, which accounts for more than 10% of its weight.
Ark founder and CEO Cathie Wood told CNBC last month that investors should “stay on the right side of change and stay on the right side of change because it has reached escape speed after the coronavirus.” Wood, a longtime Tesla bull, has a target price of $ 7,000 per share for the company to reach by the end of 2024.
The Space Exploration ETF would focus on companies that are “leading, enabling or benefiting from technologically enabled products and / or services that occur beyond the Earth’s surface,” the document said.
The space industry grew steadily in 2020, despite delays due to the COVID-19 pandemic, with investment recovering after a brief lull. Investor interest in space companies continued at high levels, despite only a few publicly traded companies.
But more space companies plan to enter public markets next year, with traditional IPOs and SPAC deals expected by 2021.
Ark divided the industry into four categories: orbital aerospace, suborbital aerospace, enabling technologies and aerospace beneficiary.
“Space exploration is possible due to the convergence of a number of themes, and a space exploration company cannot currently earn any revenue, and there is no guarantee that such a company will earn any revenue from innovative technologies in the future,” said Ark.
Ark further explained the four categories of companies that will be in the Space Exploration ETF:
“Orbital aerospace companies are companies that launch, make, maintain or operate platforms in orbital space, including satellites and launch vehicles. Suborbital aerospace companies are companies that launch, manufacture, provide services or operate platforms in suborbital space, including drones, taxis Aerospace and electric aviation vehicles Enabling technology companies are companies that create the technologies needed for successful value-added aerospace operations, including artificial intelligence, robotics, 3D printing, materials and energy storage. benefit from the aerospace industry activities, including agriculture, internet access, global positioning system (GPS), construction and imaging. “
– Maggie Fitzgerald of CNBC contributed to this report.
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