ARK Investment is Launching a Space ETF, Sending the Sector Soaring

ARK Investment is Launching a Space ETF, Sending the Sector Soaring

The company filed to launch the ARK Space Exploration ETF as ARKX, sending shares in companies such as Virgin Galactic soaring on the news.

The company filed to launch the ARK Space Exploration ETF as ARKX, sending shares in companies such as Virgin Galactic soaring on the news.

Credit | Seeking Alpha

Investing into space is really kicking it into high gear. Space stocks across the board are up high for the week, especially after Wednesday’s announcement of an ARK space ETF. 

ARK Invest, founded by CEO Cathie Wood, the most tech disruptive CEO ever, is launching a new exchange-traded fund, focused on space stocks, at least according to filings with the SEC. Wood is best known for her ARK Innovation ETF, (ARKK), and her active management of the fund. Tesla is the largest position of the fund, which has seen a 150% return over 2020.

Most of ARK’s funds follow disruptive leaders within industries, the kind of leaders that pull from the scrappy start-ups all the way to the kings of the industry. That would include the aforementioned Tesla, alongside other companies like Zillow, Invitae, Square, CRISPR, Roku and more.

It seems as though Wood isn’t contempt with just ruling the technology aspect of disruption, this time drawing her and her company’s attention to the space industry, which has recently exploded (in a good way).

Part of this is due to Tesla CEO Elon Musk, who also runs SpaceX, a rocket and spacecraft manufacturer and provider. The company has recently pioneered some incredible technologies, including the first reusable rocket, which has significantly improved profitability. SpaceX is even planning on offering ridiculously high speed satellite internet, which you can check out here.

SpaceX is private though, so it seems as though ARK’s space ETF will have to wait to be able to purchase shares of that company just yet. Other companies are still available however, including Virgin Galactic and Stable Road Acquisition, both pure-play space stocks, both up over 20% on Wednesday.

Many other space related industries were up as well, including satellite stocks such as Maxar Technologies, also up 20%, but on Thursday following further news. Defense conglomerates were included as well, with Lockheed Martin and Northrop positive for the day, while the S&P 500 and the Dow were down for the day.

This strong response to the news of this ETF’s possible launch shows the power of Cathie Wood, a revolutionary investor and CEO.

Statural Bites

Sign up for our newsletter to get bite-sized news about all five of our categories.

ARK’s actively managed ETFs, now the biggest actively managed funds in the world, were some of the highest performing in 2020, thanks to innovative picks, such as with Tesla. Wood believes heavily in disruptive innovation and growth potentials.

This incredibly strong performance has roped in billions of dollars in new cash for the funds, pushing tenfold increases in assets. 

According to the fund’s filing, the new space ETF will be engaged in space exploration and innovation, defined by the filing as “leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth.” These would fall across four different categories, including: orbital aerospace, suborbital aerospace, enabling technologies, and aerospace beneficiary.

NextBigFuture.com

Space can and probably will be an incredibly lucrative and high-growth industry for years to come, although there’s a chance that this could work out terribly. Essentially every company except for SpaceX has either failed, has worsening losses, 0 revenue, 0 growth, or 0 customers, all of which bring down these once promising companies.

Even ARK’s filing said “There is no assurance that such company will derive any revenue from innovative technologies in the future.”