Space is the place, and Ark Invest moves in.
The investment firm led by Cathie Wood has seen more than half a billion dollars flow to the Space Exploration and Innovation ETF (ARKX) it launched on March 30, with some analysts suggesting it could exceed $ 1 billion in assets within days .
Some of the fund’s investors may not quite realize what they are getting into, said Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA Research.
The fund’s impressive inflow may be “a sign that investors are interested in something Cathie Wood and the team will manage, but I’m not sure they fully appreciated what they got,” Rosenbluth told The Washington City Times’s “ETF this week. Edge “.
While ARKX is invested in cleaner games on the space race, such as satellite stock Iridium Communications, its other holdings are a mosaic of old industrialists, Internet companies and agricultural names, Rosenbluth said.
As of Friday, the top spots included geolocation company Trimble, Ark’s own 3D Printing ETF (PRNT), Kratos Defense and Security Solutions, L3Harris Technologies and JD.com. The ETF also owns shares of Netflix and Farm Deere.
“Thematic investing in ETFs is often open to interpretation, so the way Ark describes its space ETF includes companies that will benefit from aerospace operations or technologies used to support aerospace,” said Rosenbluth.
That could be Netflix and Deere, which Rosenbluth acknowledged would likely benefit from the space race in the long run, but they come at the expense of some potentially significant lockouts, he said.
“It doesn’t own any companies you’d find within UFO, for example, like Loral Space and Communications,” said Rosenbluth, referring to Procure’s competing Space ETF.