Space ETF Monthly Report: Key Takeaways
Holdings in the News
Iridium enters development deal to provide its technologies to smart phones. [1]
Rocket Lab successfully launches government spy satellites. [2]
Planet Labs signs deal with NOAA to provide data helping to better understand marine life and pollution. [3]
Viasat selected by Virgin Atlantic to provide wireless internet aboard flights. [4]
Eutelsat announces plan to merge with OneWeb to compete against SpaceX. [5]
Macro Outlook
The 2022 Q2 Space Report is out and apparently the stars are still shining on the space industry.[6] According to the non-profit Space Foundation, the space economy grew to a new record, $469 billion for 2021.[7] This 9% year-over-year increase was driven by a 6.4% growth of commercial space revenue versus the previous year and significantly from a strong demand for launch. Also highlighted in this report is the fact that over 1000 new spacecraft were sent into orbit in just the first 6 months of this current year. [8]
Although the entire report is loaded with incredible analysis and statistics, one area of extreme interest is the government and military spending section. In previous outlooks, we’ve discussed the growing role of the military in space, but the data released is even stronger than we had imagined. In total, government and military space spending had increased globally by 19% in 2021.[9] Three of the largest increases came from India (36% increase), China (23% increase) and the US (18%).[10] As geopolitical tensions continue to boil around the globe, governments and militaries now recognize the truly vital role that space plays. As competition continues to unfold in the domain of space, governments are ramping up spending and investment and its time that investors take notice.
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Space ETF Performance (As of 31.07.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
Procure Space UCITS ETF (Acc)
|
5.35%
|
-6.97%
|
-13.17%
|
-21.88%
|
-28.79%
|
-29.72%
|
|
S-Network Procure Space Index
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5.40%
|
-6.82%
|
-12.92%
|
-21.64%
|
-28.27%
|
-29.05%
|
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 31/07/2022. Please note that all performance figures are showing net data.
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