Michael Kovacs, president and CEO of Harvest, told WP he sees excellent long-term growth potential and that the product is a good addition to its specialty index category. After launching Canada’s first Blockchain fund three years ago, it’s another coup for the Oakville, Ontario-based fund provider.
Kovacs stressed that while some people might instinctively view a space fund or ETF as a fad, it’s actually an industry that’s been around since the 1950s, when the U.S. and Russia were competing for headlines. However, in the past 20 years, there has been an increasing amount of private enterprise, the most well known being SpaceX, stepping into the arena and driving down costs.
Kovacs said: “There are organizations working with the U.S. government that are winning hundreds of millions of dollars in contracts to deliver satellites for the U.S. space defense budget, which is more than $15 billion.
“If you think about the U.S. Naval fleet, it’s the largest operating fleet in the world and they depend on satellite communications and up-to-date new communications for navigation. This is a huge part of what right now is about a $2-2.5 billion dollar industry, which is estimated to grow to more than $10 billion over the next five years.”
Kovacs also highlighted the satellites needed for broadband communications, which will open up areas of the world that currently don’t have access to the internet. Add in SpaceX delivering astronauts to the International Space Station, which is using rockets developed by private companies to send a new space station to orbit the moon, and the opportunities are seismic.
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