“There certainly has been more interest in the fund this year. A lot of people had placed bets prior to last week’s Virgin launch,” said Andrew Chanin, manager of the UFO fund and CEO Of Procure.
Chanin told CNN Business that the UFO ETF is passively managed, meaning that it’s based off an index. In this case, it’s The S-Network Space Index, created by a firm called Space Investment Services.
The space economy
Chanin said that the index’s managers are looking not just for companies that aim to send wealthy tourists into space. The real money from space launches is likely to come from the increased use of satellites for communication and internet services.
So while Virgin Galactic is a key holding in the fund, most of the other top stocks in the ETF have nothing to do with space travel.
“It would be preposterous to call Amazon or Tesla space companies even though their founders are in the space business,” Chanin said.
The UFO ETF isn’t the only space stock fund
“The satellite industry is one of the most misunderstood parts of the space economy,” Chanin said, noting that satellite communications currently make up about a third of the nearly $425 billion in global revenue for the space industry.
“To look at space and exclude communications would mean you are not really representing the space economy,” he added.
Top holdings look like a mix of what is in the UFO and Final Frontiers funds, such as Trimble, Iridium, L3Harris and Lockheed.
This Article firstly Publish on www.cnn.com