VanEck launches space themed ETF
Europe is set to get another space-themed ETF, with VanEck joining the hunt.
The VanEck Space Innovators UCITS ETF (JEDI) will track the MVIS Global Space Industry ESG Index. Index provider MVIS is a subsidiary of VanEck.
The index includes companies that make 50% of their revenue from products and services related to space exploration, rockets and propulsion systems, satellite equipment and services.
A buffer rule allows existing companies in the index to drop to 25% revenue purity before getting kicked. Companies picked are weighted by market cap, subject to an 8% cap. The fund holds 25 stocks, the top 10 of which are below.
|
Constituent Name |
Weightings (%) |
|
Ses |
8.71 |
|
Iridium Communications Inc |
8.62 |
|
Intouch Holdings Pcl |
6.96 |
|
Eutelsat Communications |
6.75 |
|
Maxar Technologies Inc |
6.26 |
|
Wistron Neweb Corp |
5.09 |
|
Viasat Inc |
4.84 |
|
Globalstar Inc |
4.76 |
|
Sky Perfect Jsat Holdings |
4.76 |
|
Virgin Galactic Holdings Inc |
4.71 |
Bernie’s commentary – endless tickers;
I really like this ETF, and not just because its ticker and marketing are about Star Wars. The fund will compete with HANetf and Procure’s YODA. Which means its YODA vs JEDI as tickers for Europe’s space ETF. (When will R2D2, LUKE, C3PO, LEIA, SOLO, EWOK and SITH arrive as tickers for space ETFs? )
pace investing is a genuine theme. There are a lot of pureplays here, especially thanks to the run of SPACs bringing them online after covid sent interest rates to zero. The pureplays do things like put communications satellites into orbit (Ses, Iridium Technologies), build the global imaging used for Google Maps (Planet Labs), and organise space tourism (Virgin). A lot of space companies at this stage are focussed on building a better internet and communications infrastructure—a pretty uninteresting commercial goal. However the use cases will grow with time, to include things like mining rare earth miners.
It seems that creating multiple spin offs is not just limited to Disney, but now we have the opportunity to reminisce through ETFs as well
Also for the pedants who will point out to me that Yoda was a Jedi, I know but it didn't make such an interesting headline.
