Virgin Galactic’s Unity spacecraft hits space for the first time.
Source: Virgin Galactic
Ark Invest, which operates the largest actively managed fund traded on the stock exchange, plans to add a “space exploration ETF” under the ARKX checkmark, according to a securities depository on Wednesday.
While the ETF constituents have not yet been announced, the shares of space companies Virgin Galactic and Maxar Technologies have each increased by more than 8% in after-hours trading.
Ark Invest will be extremely successful in 2020, with its flagship fund ARK Innovation returning by more than 170% last year and growing assets under management to $ 17 billion. The largest shareholding of the fund is the electric car manufacturer Tesla, which represents more than 10% of its share.
Ark founder and CEO Cathie Wood told CNBC last month that investors should “go on the right side of change and stay on the right side of change, because it has reached the speed of coronavirus evacuation.” 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 ETF for space exploration would focus on companies that “lead, allow or benefit from products and / or services with technological possibilities that appear beyond the Earth’s surface”, the file states.
The space industry has grown steadily in 2020, despite delays caused by the COVID-19 pandemic, with investments returning after a short hiatus. Investor interest in space companies continued to rise, despite only a few listed companies.
But more space companies plan to enter public markets next year, with both traditional IPOs and SPAC transactions expected in 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 several themes, and a space exploration company may not currently have any revenue and there is no assurance that such a company will generate revenue from innovative technologies in the future,” Ark said. . .
Ark further explained the four categories of companies that will be in the Space Exploration ETF:
“Orbital aerospace companies are companies that launch, build, service or operate platforms in orbital space, including satellites and launch vehicles. Suborbital aerospace companies are companies that launch, build, service or operate platforms in suborbital space, including drones, air taxis and electric aviation vehicles. Enabling technology companies are companies that create the technologies needed for value-added aerospace operations, including artificial intelligence, robotics, 3D printing, materials and energy storage. activities, including agriculture, internet access, global positioning system (GPS), construction and imaging. “
– Maggie Fitzgerald of CNBC contributed to this report.
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