Space ETF Monthly Report: Key Takeaways
Holdings in the News
Maxar Technologies and BlackSky win multi-year contracts with US National Reconnaissance Office. [1]
Eutelsat inks deal with Telenor Maritime to provide connectivity over the Mediterranean. [2]
Viasat satellites confirmed victim of Russian cyberattack leading up to Ukrainian invasion. [3]
Astra announces plans to start launching rockets in the UK in 2023. [4]
Lockheed Martin and Filecoin Foundation announce plans to build blockchain network in space. [5]
Macro Outlook
In May, the US National Reconnaissance Office announced multiple 5-10 year contracts with various satellite imagery providers. Winning bidders include YODA holdings Maxar Technologies and BlackSky. Maxar’s 10 year deal could be worth up to $3.2 billion for the company as requests for satellite imagery continues to see robust demand amid the ongoing war in Ukraine.[6] The robust array of satellite deliverables contemplated in these agreements will provide the US with critical intelligence allowing for the gathering of actionable information regarding activities on Earth and in space. [7]
As satellite imagery becomes an increasingly necessary and valuable tool for military and intelligence agencies worldwide, governments and their agencies continue to raise the floor on space industry spending. This revamped interest in Earth-observation and satellite imagery may not only be a benefit for satellite manufacturers and operators, but sending satellites to space also increases demand from launch companies such as YODA holdings Astra, Rocket Lab, United Launch Alliance (a JV between Boeing and Lockheed Martin), Avio and others. As launch costs continue to decrease due to numerous technological advancements, space has become extremely attractive to existing users and new entrants paving the road for the next wave of space industry growth. [8]
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Space ETF Performance (As of 31.05.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
Procure Space UCITS ETF (Acc)
|
0.14%
|
-8.54%
|
-15.76%
|
-15.92%
|
NA
|
-24.35%
|
|
S-Network Procure Space Index
|
0.21%
|
-8.44%
|
-15.47%
|
-15.73%
|
-23.68%
|
-23.70%
|
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 31/05/2022. Please note that all performance figures are showing net data.
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