Global X ETFs Europe has announced the launch of the Global X Space Tech UCITS ETF (LUNR), which will list on London Stock Exchange and Deutsche Börse Xetra.
The ETF seeks to provide investors with exposure to companies positioned to benefit from the continued expansion of the global space economy, including businesses involved in satellite communications, launch systems, space infrastructure, space transportation and other enabling technologies supporting the commercialisation and exploration of space.
The firm writes that, once dominated by governments and national space programmes, the space sector is rapidly commercialising, driven by private-sector innovation. Falling launch costs, advances in reusable rocket technology and growing demand for satellite-enabled communications, navigation and data services are expanding access to space and unlock new opportunities.
As private sector innovation accelerates, the global space economy may continue to grow in both scale and scope, creating potential opportunities across an expanding ecosystem of space-related businesses, the firm says.
“The space economy is approaching an inflection point, with falling launch costs and increasing private sector participation broadening the industry’s addressable market and expanding the range of commercial applications for space-based technologies,” says Andrew Ye, CFA, Thematic Investment Strategist at Global X ETFs Europe. “As access to space becomes more affordable and new commercial applications emerge, the space economy appears to be creating opportunities across a growing range of industries and business models that extend beyond traditional aerospace and defence companies.”
LUNR has a total expense ratio (TER) of 0.50 per cent and tracks the Mirae Asset Space Tech UCITS Index, a pure-play, revenue-based benchmark designed to provide exposure to companies from developed and emerging markets that derive at least 50 per cent of their revenues from space-related activities. This includes businesses involved in rocket launch and reusable launch systems, satellite communications and data services, space technologies and components, and space transportation, tourism and exploration.
“The continued development of the space economy is expanding the opportunity set for investors, with a growing number of listed companies generating a meaningful proportion of their revenues from space-related activities,” says Gea Blumberg, Co-Head and Head of Business Development at Global X ETFs Europe. “LUNR is designed to provide targeted exposure to this emerging theme through a pure-play methodology, prioritising companies where space-related activities form a core part of the business model rather than a secondary source of revenues.”
