Space ETF Monthly Report: Holdings in the News
- ULA, Arianespace and Blue Origin selected by Amazon’s Kuiper for satellite launches. [1]
- Astra Space successfully launches satellites on behalf of Swarm. [2]
- Maxar provides images of corpses on the ground in Bucha, Ukraine despite Russian denial of mass murder event. [3]
- Rocket Lab successfully launches 2 BlackSky satellites into space for Earth-observation. [4]
- Iridium Communications provides thousands of satellite communication devices to Ukraine. [5]
Macro Outlook
Amazon just announced the biggest commercial launch deal in history. In 2020, Amazon received FCC approval to launch ~3200 satellites into low-earth orbit as part of a plan to build out a massive broadband internet constellation under the name “Project Kuiper”. Now, the company has announced that it has contracted 3 major launch companies to help send their satellites into orbit. It was no surprise that one company selected was Jeff Bezos’s Blue Origin. However, Amazon also selected the United Launch Alliance (a JV between YODA holdings Boeing and Lockheed Martin) as well as Arianespace (owned by multiple companies including YODA holdings Airbus, Avio and Thales). To add more fuel to the fire, the FCC requires Amazon to launch at least half of the approved satellites by 2026 or risk a reduced approval on the amount of unlaunched satellites. [6]
This marks a major development for the space industry and a new chapter in the battle of broadband internet satellite constellations between SpaceX, Amazon and OneWeb. As a result of these massive contracts, companies wishing to launch items to space over the next several years may be forced to find alternate launch solutions from the likes of YODA holdings like Astra Space, Rocket Lab or other providers. Considering Russia’s refusal to provide launch capabilities to “unfriendly” nations or companies, it is possible that launch supply may become dwarfed by launch demand for years to come. [7] Competition amongst these constellation titans may hopefully lead to better technologies and lower prices for end-users.
Space ETF Performance (As of 31.03.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
Procure Space UCITS ETF (Acc)
|
3.58%
|
-4.78%
|
-14.82%
|
-4.78%
|
NA
|
-14.33%
|
|
S-Network Procure Space Index
|
3.65%
|
-4.60%
|
-14.27%
|
-4.60%
|
-8.59%
|
-13.63%
|
Performance before inception is based on back tested data. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. Source: Bloomberg / HANetf. Data as of 31/03/22. Please note that all performance figures are showing net data.
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