Virgin Galactic’s spacecraft Unity reaches 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” to the ARKX, according to a security statement Wednesday.
While the ETF ingredients have yet to be announced, the shares of space companies Virgin Galactic and Maxar Technologies each jumped more than 8% after trading hours.
Ark Invest is having a very successful 2020, with its flagship ARK Innovation fund yielding more than 170% last year and the growth of assets under management up to $ 17 billion. The largest part of the fund is the manufacturer of electric cars, 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 hit the escape rate in the wake of the coronavirus . ‘ By the end of 2024, Wood, a longtime Tesla bull, has a target price target of $ 7,000 per share.
The Space Exploration ETF will focus on companies that ‘lead, enable or benefit from technology-enabled products and / or services that occur outside the earth’s surface’, the application states.
The space industry grew steadily in 2020 despite delays due to the COVID-19 pandemic, with investments bouncing back after a brief hiatus. Investors’ interest in space companies continued at an increased level, despite only a few listed companies.
But more space companies plan to enter public markets in the coming year, with traditional IPOs and SPAC deals expected in 2021.
Ark divided the industry into four categories: orbital aviation, suborbital aviation, technological capabilities and beneficiary aviation.
“Space exploration is possible due to the merging of a number of themes, and a space exploration company may not earn any revenue at the moment, and there is no assurance that such a company will earn any revenue from innovative technologies in the future. not, “the Ark archiving said. .
Ark further explained the four categories of companies that will be in the Space Exploration ETF:
“Orbital aerospace companies are companies that launch, manufacture, operate or operate platforms in orbital space, including satellites and launch vehicles. Suborbital Aerospace Companies are companies that launch, make, operate or operate platforms in suborbital space, including drones, aircraft taxis and electric aircraft Enabling Technologies companies are companies that create the technologies needed to successfully add value to aviation operations, including artificial intelligence, robotics, 3D printing, materials and energy storage. Aerospace companies with an aviation industry are companies that benefit from aviation activities. “including agriculture, internet access, global positioning system (GPS), construction and imaging.”
– Maggie Fitzgerald, CNBC, contributed to this report.
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