Ark Invest launched a space stocks exchange-traded fund on Tuesday. The Ark Space Exploration & Innovation ETF, led by Tesla (TSLA) bull Cathie Wood, began trading under the ticker ARKX.
The new fund’s 39 holdings include space companies as well as enabler and even potential beneficiaries of space-based services. Enabling technology companies can include those involved in artificial intelligence, robotics and 3D printing. Beneficiary companies can include companies that use GPS-related technologies to improve agriculture, internet access, drones, air taxies and electric aviation vehicles.
ARKX, the firm’s eighth ETF, includes legacy space stocks like Boeing (BA) and Lockheed Martin (LMT), which make satellites separately and rockets jointly through their United Launch Alliance venture. Boeing is also building NASA’s massive Space Launch System rocket.
The new ETF includes newer space stocks such as Virgin Galactic (SPCE) as well.
Lesser-known names include top holding, Trimble (TRMB), which makes GPS technology to help guide and track equipment and people. ARKX also includes the The 3D Printing ETF (PRNT). Elon Musk’s SpaceX is a private company, and therefore not a candidate for the new fund.
Wood, known for her investing strategy focusing on disruptive innovation, has invested heavily in Tesla through her Ark Innovation ETF (ARKK). ARKK returned nearly 150% last year. It’s down more than 10% this year as technology stocks struggle amid a market rotation.
Space Stocks Take Off
ARKX fell 6.8% to 20.15 on the stock market today, and the Procure Space ETF (UFO) dipped 0.5%. Among other space stocks, Boeing was flat, Lockheed Martin eased 0.6%, and Virgin Galactic slipped 0.1%.
As space stocks gain momentum, more space-tech companies are planning IPOs via blank-check companies. But at least for now, the ARKX ETF doesn’t include startups like space infrastructure company Momentus, which has plans to go public this year through a merger with Stable Road Acquisition Corp.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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