Space ETF Monthly Report: Key Takeaways
Holdings in the News
• Globalstar inks deal to provide satellite capabilities for Apple iPhone 14 devices. [1]
• Rocket Lab signs agreement with US Department of Defense to explore expedited on-Earth cargo delivery solutions. [2]
• Iridium signs deal with SpaceX to launch additional future satellites in 2023. [3]
• MDA looks to increase U.K. business operations in global expansion effort. [4]
• Trimble announces multiple M&A deals to expand its ESG and agribusiness capabilities linked to space technologies. [5]
Macro Outlook
While Apple hosted a recent event to celebrate the launch of the new iPhone 14, the space industry may be an under-the-radar winner. At the event, Apple highlighted that their new line of phones will have satellite connectivity to support emergency messaging and communications features. To do so, Apple has selected Globalstar as a provider of these services; a massive win for this lesser known satellite company. Although this deal may be the first for both companies, the broader ramifications may benefit numerous players across the space industry. [6]
For years, Apple has been viewed as a leader in the smartphone industry, and when leaders lead, competitors typically follow. The announced deal focuses specifically on capabilities for North American clients but this may only be the beginning.[7] If other smartphone manufacturers follow suit, significant investments may impact many other space players. In order to build out these capabilities, hardware and software must be developed to enable these technologies. Satellites will need to be manufactured and operated. Launch companies will need to transport these satellites into orbit. Additional ground stations will need to be built to support these communications. When all is said and done, this deal may signal a major catalyst for the advancement of space industry for years to come. [8]
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Space ETF Performance (As of 31.08.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
Procure Space UCITS ETF (Acc)
|
-0.62%
|
-7.67%
|
-15.56%
|
-22.37%
|
-32.44%
|
-30.15%
|
|
S-Network Procure Space Index
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-0.56%
|
-7.53%
|
-15.33%
|
-22.07%
|
-31.94%
|
-29.45%
|
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 31/08/2022. Please note that all performance figures are showing net data.
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