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Cathie Woods ARK Invest is planning ‘Space Exploration ETF’ ARKX

Virgin Galactic’s spacecraft Unit reaches space for the first time.

Source: Virgin Galactic

Ark Invest, which operates the largest actively managed listed fund, plans to add a “Space Exploration ETF” under the ticker ARKX, according to a securities filing on Wednesday.

While the ETF’s components have not yet been announced, shares in space companies Virgin Galactic and Maxar Technologies each jumped more than 8% in after-hours trading.

Ark Invest is entering a very successful 2020, with its flagship ARK Innovation Fund returning more than 1

70% last year and growth in assets under management to $ 17 billion. The fund’s largest share is the electric car manufacturer Tesla, which accounts for more than 10% of its weighting.

Ark founder and CEO Cathie Wood told CNBC last month that investors should “get on the right side of change and stay on the right side of change because it has hit the speed of flight in the wake of coronavirus.” Wood, a longtime Tesla bull, has a goal of $ 7,000 per. Share that the company must hit by the end of 2024.

The Space Exploration ETF will focus on companies that are “leading, enabling or benefiting from technologically enabled products and / or services that occur outside the Earth’s surface,” the archive said.

The space industry grew steadily in 2020 despite delays due to the COVID-19 pandemic, with investment bouncing back after a brief hiatus. Investor interest in space companies remains at an increased level despite only a few listed companies.

But more space companies plan to enter public markets in the coming year, with both traditional IPOs and SPAC offerings expected in 2021.

Ark divided the industry into four categories: orbital aerospace, suborbital aerospace, technology enabling and aerospace receiver.

“Space exploration is possible because of the convergence of a number of themes, and a space research firm may not currently receive any revenue, and there is no guarantee that such a company will generate revenue from innovative technologies in the future,” Ark’s archive said. .

Ark further explained the four categories of companies that will be in the Space Exploration ETF:

“Orbital Aerospace Companies are companies that launch, manufacture, service or operate platforms in the orbital space, including satellites and launch vehicles. Suborbital Aerospace Company are companies that launch, manufacture, service or operate platforms in the suborbital space, including drones, air taxis Activation technology companies are companies that create the technologies required for successful aviation value creation, including artificial intelligence, robotics, 3D printing, materials and energy storage. Companies that receive aerospace are companies that stand to take advantage of aviation activities, including agriculture, internet access, GPS (GPS), construction and imaging. “

– CNBC’s Maggie Fitzgerald contributed to this report.

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