You Can Invest in Space, But Should You?
Hello ICYMI friends - Three months after launching the world's first ETF, founder of Procure Am space ETF Andrew Chanin sat down with TheStreet and broke down all an investor needs to know about getting exposed to space.
First off, Chanin noted not all companies whose revenues comprise the $400 billion total market for the 'space industry' are 100% weighted towards space.
And when looking at any company deriving revenue related to space activities, an investor should understand it's difficult to pick the companies that will take the most market share.
In steps Chanin's ETF.
Firstly, four of the holdings are Honeywell , Boeing , AT&T and Sirius .
Those are all exposed to space but nowhere near 100%, on net.
Scratching the old head yet?
"So those are just three [four] of the holdings," Chanin said.
"Those are more diversified aerospace defense, industrial names, but they do have a very large exposure to the space industry.
However, if you actually look at the majority of the funds -- roughly over 80% of the fund is actually allocated to these pure play space names that most people aren't familiar with.
So there you might find a lot of satellite manufacturers and operators launch equipment companies, ground equipment companies." Here are three holdings in the fund closer to a pure play on space: Maxar Technologies Intelsat Trimble Want to get my newsletter everyday?
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