Virgin Galactic’s spacecraft Unity goes into space for the first time.
Source: Virgin Galactic
Ark Invest, which actively operates the largest managed exchange fund, plans to add a “Space Exploration ETF” under the ticker ARKX, according to a Wednesday filing.
While the composition of the ETF was yet to be announced, shares of space company Virgin Galactic and Maxar Technologies all jumped more than 8 percent in after-hours trading.
Ark Invest is gaining ground in 2020, with the fund̵7;s flagship ARK Innovation offering more than 170% returns last year and asset under management growth to $ 17 billion, a huge holdings. The top of the fund is electric car maker Tesla, which accounts for more than 10% of its weight.
Ark founder and CEO Cathie Wood told CNBC last month that investors should “It’s on the right side of the change and on the right side of the change because it has been hit by the coronavirus outbreak,” said Wood, a longtime Tesla bull, with a $ 7,000 share price target for the company. Until the end of 2024
The Space Exploration ETF will focus on companies that “lead, activate, or benefit from technology-enabled products and / or services that occur outside the Earth’s surface,” the document said.
The space industry continues to grow in 2020, despite delays due to the COVID-19 outbreak, with investment returning. Investor interest in space companies continues to soar, despite the presence of few publicly traded companies.
But more and more space companies plan to enter the public market next year, with both a traditional IPO expected and a SPAC deal in 2021.
Ark divides industries into four categories: in-orbit aerospace, under-base aeronautics, activation technology, and aerospace beneficiaries.
“Space exploration is possible due to a combination of different formats, and space exploration companies may not be earning any revenues at this time and there is no certainty that they will receive revenue from innovative technologies in the United States.” The future, ”said Ark’s papers.
Ark explains more about the four types of companies that will be in the Space Exploration ETF:
“Orbital Aerospace Companies is a company that launches, manufactures, services or operates platforms in orbiting space, including satellites and spacecraft. Suborbital Aerospace Companies is the company that launches, manufactures, services or operates platforms in under orbit areas, including drones.” Air taxis and electric aviation vehicles, the Enabling Technologies Companies are building the technology needed for value-added aerospace operations, including artificial intelligence, robotics, 3D printing, materials and energy storage. Aerospace Beneficiary Companies are companies that benefit from aerospace. Activities include agriculture, internet access, global positioning systems (GPS), construction and photography.
– CNBC’s Maggie Fitzgerald contributed to this report.
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