Virgin Galactic’s Unity spacecraft hits space for the first time.
Source: Virgin Galactic
Ark Invest, which operates the actively managed largest publicly traded fund, plans to add a “space exploration ETF” under the ARKX marker, according to a stock statement on Wednesday.
While the components of the ETF have not yet been announced, shares of space companies Virgin Galactic and Maxar Technologies have jumped more than 8% each from after-hours trading.
Ark Invest arrives with huge success in 2020, with its flagship fund ARK Innovation returning more than 170% last year and the growth of managed assets to $ 17 billion. The largest share of the fund is Tesla, an electric vehicle manufacturer, which accounts for more than 10% of its share.
Ark founder and CEO Cathie Wood told CNBC last month that investors should “stand on the right side of change and stay on the right side of change, as it has affected the speed of change. ‘escape after coronavirus’. Wood, a longtime Tesla bull, has a goal of $ 7,000 per share for the company by the end of 2024.
The Space Exploration ETF will focus on companies that “lead, enable or benefit from technologically enabled products and / or services that occur beyond the Earth’s surface,” the documentation said.
The space industry grew steadily in 2020 despite delays due to the COVID-19 pandemic, with an investment that recovered after a brief hiatus. Investor interest in space companies has continued at intense levels, despite only a few listed companies.
But more space companies are planning to enter public markets next year, with traditional IPOs and SPACs scheduled for 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 issues, and a space exploration company may not earn revenue at present and there is no guarantee that this company will earn revenue from innovative technologies in the future,” Ark stated. . .
Ark also explained the four categories of companies that will be part of the Space Exploration ETF:
“Orbital aerospace companies are companies that launch, manufacture, service, or operate platforms in orbital space, including satellites and launch vehicles. Suborbital aerospace companies are companies that launch, manufacture, service, or operate platforms in orbital space. suborbital space, including drones, air taxis 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. Beneficiary aerospace companies are companies that will benefit from aerospace activities, including agriculture, Internet access, global positioning system (GPS), construction and image. “
– CNG’s Maggie Fitzgerald contributed to this report.
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