ARK's Newest ETF, Space Exploration Will Be Another Banger For Cathie Woods

Last week, we got word that Cathie Woods' the rock star ETF fund manager has plans on starting a space exploration ETF. According to the filing, Space Exploration ETF will focus on companies that are “leading, enabling, or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth."

Cathy Woods was the one who was the biggest Tesla bull out there years ago and said Tesla could hit $4000. People thought she was crazy, but she looked beyond the car making segment of the business. Her thesis was Tesla was also a chip manufacturer, a battery manufacturer and a data collector (think autonomous cars).

Cathy's MO is to be successful, you need conviction in your ideas and must be proud of your work, even amid criticism. And she has been able to put to work what she believes in though her ARK ETFs that invests in DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.

In basketball, when you are hot, your teammates keep feeding you the ball.

Five of ARK’s actively managed ETFs have returned an average of more than 150% year to date—thanks to their large bets on highflying stocks like Tesla (ticker: TSLA) and Square (SQ). The best performer, ARK Genomic Revolution (ARKG), gained 203%; even the worst-performing ARK Autonomous Technology & Robotics (ARKQ) more than doubled investors’ money over the past year.

The strong performance has made the ARK funds all the more desirable for investors, who have poured millions of dollars in every day during the second half of 2020. The pace just picked up to a record level over the past month.

In December, ARK Investments took in nearly $6.8 billion new assets, the third most only behind ETF giants Vanguard and BlackRock’s (BLK) iShares, according to data from FactSet. That’s especially impressive considering ARK has seven ETFs under its sleeve, while BlackRock and Vanguard have hundreds.

Cathy's newest ETF, the Space Exploration ETF will feature four categories. These categories are Orbital Aerospace Companies are companies that launch, make, service, or operate platforms in the orbital space, including satellites and launch vehicles. Suborbital Aerospace Companies that includes drones, air taxis and electric aviation vehicles. Enabling Technologies Companies that derivative to aerospace operations, including artificial intelligence, robotics, 3D printing, materials and energy storage. Aerospace Beneficiary Companies that stand to benefit from aerospace activities such as global positioning system (GPS).

Although Cathy hasn't announced which companies will be included in the new ETF, some companies to monitor are:

• Maxar Technologies Inc. provides earth intelligence and space infrastructure solutions all over the world. The Earth Intelligence segment offers geospatial information, applications, and analytic services and the Space Infrastructure segment provides space and ground based infrastructure, robotics, components, and information solutions.

• Viasat, Inc. provides broadband and communications products and services worldwide. It operates through three segments: Satellite Services, Commercial Networks, and Government Systems.

• Loral Space & Communications Inc., a satellite communications company, offers satellite-based communications services to the broadcast, telecom, corporate, and government customers worldwide.

Other names include the household names such as Defense giants like Northrop Grumman (NOC), Boeing (BA) or Lockheed Martin (LMT).

Look for the ETF to start trading sometime in April or May. Based on her track record and the current trends, this ETF should be another stellar performer for Cathy.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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