After a scintillating 2020, ARK Investment Management is ready to launch another, space-based ETF.
In a filing with the Securities and Exchange Commission (SEC), the New York-based ETF issuer reveals plans for the ARK Space Exploration ETF. The fund, like five of ARK’s seven other ETFs, will be actively managed. The filing indicates the new ETF, ARK’s first in several years, will trade under the ticker “ARKX” and charge around 0.75% per year, or $75 on a $10,000 investment. That’s in line with the issuer’s other active ETF products.
ARK offers a space exploration strategy to managed account investors in Japan.
That offering “seeks to provide exposure to companies involved in space-related businesses like reusable rockets, satellites, drones, and other orbital and sub-orbital aircrafts. These innovations should transform logistics, observation, agriculture, telecom, drones, and may even put humans on Mars,” according to the issuer.
Exploring ETFs in the Space Exploration Space
The new ETF will compete with the Procure Space ETF (NYSE Arca: UFO).
UFO tracks the S-Network Space Index, which focuses on companies that are significantly engaged in space-related activities. Index constituents span multiple industries, including satellite-based consumer products and services, rocket and satellite manufacturing, space technology hardware, and space-based imagery and intelligence services.
Approximately 80 percent of companies in the index derive the majority of revenues directly from their involvement in the space industry, enabling investors to potentially capture this growing segment of the global economy. The Commerce Department is already throwing its support behind the American space industry with ambitious goals for regulatory reform and promotional efforts.
Another fund in the space exploration space is the SPDR Kensho Final Frontiers ETF (ROKT).
ROKT seeks to provide investment results that correspond generally to the total return performance of the S&P Kensho Final Frontiers Index. The index is designed to capture companies whose products and services are driving innovation behind the exploration of deep space and deep sea. The fund may invest in equity securities that are not included in the index, cash and cash equivalents or money market instruments.
For more on active strategies, visit our Active ETFs Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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