Space Tech ETF Launched by Global X
Designed to Provide Targeted Exposure to Companies Contributing to the Global Space Economy
An exchange-traded fund (ETF) designed to provide targeted exposure to companies contributing to the global space economy has been launched by Global X. The fund is passively managed with an expense ratio of 50 basis points.
“Investors are looking for ways to capitalize on space exploration but we believe existing ETF options often dilute exposure with broad allocations or unrelated technology holdings.”
Pedro Palandrani, Global X
The space economy was once a speculative frontier controlled exclusively by global superpowers, but it could become a $1 trillion revenue opportunity over the next decade as commercialization opportunities expand.[i] Advances in launch technology, satellite miniaturization, reusable rockets, robotics, and data analytics have made space-based applications more viable.
“Investors are looking for ways to capitalize on space exploration but we believe existing ETF options often dilute exposure with broad allocations or unrelated technology holdings,” said Pedro Palandrani, Head of Product Research & Development at Global X. “Investors stand to benefit from a more intentional, revenue-focused method designed to capture these faster-growing space technology segments.”
ORBX tracks the Global X Space Tech Index, which tracks pure-play companies, meaning those that earn at least 50% of their revenue from critical segments of the upstream and downstream space sectors. This includes companies involved in the development of rocket launch systems and reusable rockets; the production of mission-critical space technology and components, including engines, orbital transport systems, software, and data solutions; the delivery of satellite-enabled telecommunications and data services; and the provision of space transportation, tourism, and exploration services.
“The global space economy is expanding, with several high-profile IPO candidates on the horizon. As a leader in thematic investing, we’ve designed ORBX to deliver a pure-play approach across the space value chain targeting disruptive innovators within that market,” Palandrani continued. “Advancements in technology are moving the entire space tech value chain forward. In the near-term, we expect to see significant value from businesses offering reusable rockets, space tech components, satellite telecommunications, and data services. In the longer term, we believe there’s also potential for space transportation, exploration, and even long-duration opportunities like orbital computing. Despite the market volatility we’ve seen so far this year, investor appetite for structural growth remains strong. In short, we believe the space economy is positioned for meaningful growth.”
Newly listed companies will be assessed for inclusion in the index on the second and fourth Friday of most months; in February, May, August, and November, newly listed companies will be considered for inclusion on the regular quarterly reconstitution dates.