Space ETFs Multiply: VanEck, WisdomTree, and Seraphim Launch New Funds
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The article reports on the launch of several new space-focused exchange-traded funds (ETFs) by VanEck, WisdomTree, and Seraphim Space in partnership with HANetf, targeting the burgeoning space economy including space tourism, orbital data centers, and satellite manufacturing. Seraphim CEO Mark Boggett emphasizes that the opportunity is in investing in infrastructure for connectivity and intelligence, not just space itself. He notes that SpaceX's IPO caused sector volatility, creating oversold positions in companies like HawkEye 360. WisdomTree's fund holds Planet Labs, whose satellite imagery feeds AI models for applications like agriculture and defense. Boggett states that AI's power depends on data from space. Performance of existing US space ETFs is mixed: the Tema Space Innovators ETF (NASA) is down about 2% year-to-date, while the Ark Space & Defense Innovation ETF (ARKX) is up over 9% and the Procure Space ETF (UFO) is up 10.5% year-to-date. Seraphim, a space tech venture capital firm, is entering the ETF market for the first time.
Source report
Author: Lilly Riddle Source: The Daily Upside
Much as the universe is expanding, so is the cosmos of space ETFs.
Two exchange-traded funds have come to market recently that target the burgeoning space economy — a growing collection of firms and industries encompassing space tourism, orbital data centers, satellite manufacturing, and more. The latest U.S. strategies come from VanEck and WisdomTree, whose space funds launched in May and July, respectively. Meanwhile, London-based Seraphim Space recently debuted its New Space UCITS ETF in partnership with HANetf.
"This opportunity is not simply investing in space," Seraphim CEO Mark Boggett said. "It's investing in the infrastructure layer that's going to power connectivity, intelligence and economic activity."
A SpaceX Odyssey
The elephant in the room, SpaceX, generated volatility throughout the sector earlier this year, with a massive selloff after the company's IPO. This led to oversold positions in companies like commercial satellite operation firm HawkEye 360, Boggett said, making them valuable for space-curious investors.
WisdomTree's fund, on the other hand, holds companies like Planet Labs, which produces commercially available satellite imagery for applications such as agriculture and mapping. This satellite data is important for feeding AI models, Boggett added, and can be used to identify illegal fishing or oil transportation when it occurs.
"AI is only as powerful as the data that is being fed, and this data is increasingly coming from space," Boggett said, adding that the information is leading to insights "for industries like agriculture, defense, insurance, energy [and] supply chains."
Performance Among Major U.S. Space ETFs
Performance among the biggest U.S.-based space ETFs is mixed, reflecting that volatility:
- Tema Space Innovators ETF (NASA) — Over $1 billion in AUM, down approximately 2% year to date.
- Ark Space & Defense Innovation ETF (ARKX) — Approximately $755 million in AUM, up just over 9% YTD.
- Procure Space ETF (UFO) — Roughly $545 million in AUM, up 10.5% year to date.
Open the Pod Bay Floodgates, HAL
With its new product, Seraphim — a space tech venture capital firm — is diving into the world of ETFs for the first time.
"What we're looking to be compared against is the performance of the other ETFs that take a much broader view, including traditional space companies within their index," Boggett said, "as well as the new space companies."
This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to the free Advisor Upside newsletter.
Source
Yahoo FinanceWestern