Space Stocks heading to the Moon

Space Stocks heading to the Moon

Catherine Wood, the founder, CEO, CIO, and ARK Invest founder, is ranked among the best investors in the world. In the year 2020, her top fund, the ARK Innovation ETF (ARKK), was ranked the best performer globally. The performance of the ETF can be attributed to two distinct points. The first point is that there are not many actively run ETFs in the market now, especially with huge gains of 148% in the previous year. The second trait is that ARK boasts staid “safe” stocks that support and contain traditional investors and numerous fund manager’s portfolios.

With the outstanding performance, Catherine’s assets under her supervision developed significantly and became the biggest active ETF globally, just half a decade after being launched. ARKK is now up 18% in 2021, and with the projection, technology is expected to be one of the best performers in the sector this year, which is an indicator of good things to come.

ARK Invest did filing for a new space exploration fund, the ARK Space Exploration ETF, which has firms at the front of one of the fastest-growing industries. Since the first man landed on Moon, there have been many changes, and though the government is still active, the private sector has made a massive step in getting into the space game hugely. An aggregate of over $415 billion was invested in the space sector in 2019 alone, which was a 79% increment from 2009. 80% of the spending was from the private industry, which was companies that assembled everything ranging from satellite systems to the deep-space rocket technology and other specialty suits for cosmonauts in mission.

According to Morgan Stanley, the global space industry is expected to spawn over $1 trillion in returns in 2040, increasing from the $350 billion generated today. A significant portion of the growth will be from the US military expenditure, which is projected to extend to $738 billion by next year, 20% of the whole federal budget.

The Trump administration supported the space exploration programs. It pioneered a novel, uniformed division of the military, Space Force, and allocated it $23 billion for space ventures in the recent budget, which was 63% up from the preceding year. The satellite industry profits a lot from the US government’s spending. According to the Satellite Industry Association, the manufacturing of satellites is estimated to be worth around $20 billion alone, and it’s controlled by big aerospace companies like Boeing (BA).