Stock Market Analysis

Cathie Wood’s ARK Space Exploration ETF Could Be Space’s Best Bet

The world’s most-exciting wealth management fund just got a whole lot more exciting following the ‘launch’ of ARK’s space ETF.

It’s not for everyone, but there is something fascinating about space, and today, retail investors can buy a little chunk of Cathie Wood’s latest ARK ETF, $ARKX. 

But it’s not what you might think…

Why is Netflix in there?

A space ETF would be all about rocketships and lunar landers, right? Wrong, and that’s where ARKX comes in. 

Sure, the ARK Space Exploration ETF (NYSEAMERICAN: ARKX) does include pure-play space companies like Virgin Galactic and aerospace leaders such as Boeing, but it has drawn a lot of skepticism on Fintwit regarding some non-traditional ‘space’ stocks such as e-commerce giant Alibaba, agricultural leader Trimble, and streaming king Netflix.

There’s a method to the madness though. Instead of putting all of the ETF’s eggs in one volatile basket — and space is a very volatile industry — ARKX is also betting on the impact that improved space innovation will have for life on Earth. 

In the U.S. alone, 40 million people don’t have access to broadband, but a satellite solution — like Elon Musk’s Starlink — could change all that, and suddenly Netflix’’s total addressable market is that much bigger. Improved transport systems in space will mean improved aerospace travel on Earth, which will greatly reduce Alibaba’s e-commerce footprint as well as shipping times for Aliexpress. And we all know that agriculture is the first experiment performed to test the survivability on any new planet/moon — a new market for Trimble. 

So for space-enthused investors, don’t diss this new ETF before doing some proper due diligence. Although it may not seem as outrightly connected to space travel, ARKX is — in typical ARK fashion — just thinking outside the box. Space travel is about so much more than just rockets and aliens and ARKX is spotting that opportunity.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here

Jamie Adams
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.