Cathie Wood Is Launching Her Newest Space ETF
Cathie Wood is the CEO and chief investment officer of ARK Invest and one of the most successful Hedge Fund managers of the past decade. Wood’s runs three of the highest-returning stock ETFs of the last three years. What sets apart the ARK ETFs is not just that they are actively managed and perform well, but specifically aim to capture emerging growth markets – often on the cutting edge of technology. Cathie Wood’s newest edition to the ETF set will focus on Space and will be called ARK Space Exploration under the ticker ARKX.
The ETF has been in the works for a few months, in fact, ARKX filed on January 13 of this year. So why is this talked about now? Well, March 29th, 2021 could be the ETFs release date (when the SEC approval process is complete).
So how does the competition stack up and is there any competition at all? So far there’s not much but one ETF that has been around and focused on the same sector is Procure’s UFO space-themed ETF which has gained 11% gain in the past year. The ETF was said to be the world’s first pure-play space ETF and holds Viasat, Gilat, and Loral Space, in addition to other equities. But what about the sector as a whole? Is space really something you would want to invest in? Some critics have pointed out that the industry of space, specifically space commercialization is still limited to a large degree and doesn’t have enough companies that are directly tied to space exploration. In fact, Virgin Galactic is one of the only options investors have for an investment that is directly tied to space, as SpaceX is private.
Luckily, the new ARKX ETF is more related to space exploration and innovation than it is commercial space flight, meaning a wider range of technologies, goals, and applications could be on the table.
What do you think about Cathie Wood’s new ETF, and do you think it will perform as well as past ARK ETFs?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.