Space Stock ETFs Are Suddenly Hot — Only 1 Owns SpaceX Before the IPO

Space-themed exchange-traded funds (ETFs) are suddenly drawing investor attention, but only one of them holds a stake in SpaceX ahead of its highly anticipated initial public offering (IPO).

According to a report by Barrons.com, there are several space-focused ETFs, including both actively managed and index funds. However, the only fund that has gained access to SpaceX is the "ARK Venture Fund" (ticker: ARKVX), a closed-end fund that invests in private companies before they go public.

Details

SpaceX, founded by Elon Musk, holds a unique position in the space industry thanks to its reusable rocket technology and Starlink satellite internet project. The company is estimated to be worth over $150 billion, making it one of the most valuable private companies globally.

The ARK Venture Fund, managed by ARK Invest under Cathie Wood, allows investors exposure to SpaceX before its IPO, a feature not offered by other space-focused ETFs such as the "Procure Space ETF" (UFO) or the "ARK Space Exploration & Innovation ETF" (ARKX).

Context

This news comes amid growing investor interest in the space sector, fueled by successful missions from SpaceX and other companies like Blue Origin. However, SpaceX remains private and has not yet set a date for its IPO, making access through private funds a rare opportunity.

What This Means for Investors

For investors looking to gain exposure to the space sector, ETFs offer a variety of options, but it's important to note that most do not hold shares in SpaceX. Those seeking pre-IPO investment in SpaceX may need to consider funds like the ARK Venture Fund, keeping in mind that such funds carry higher risks due to their private nature.