Cathie Wood’s highly anticipated ARKX ETF launches tomorrow as the Ark Space Exploration ETF (BATS:ARKX), and increasing excitement is building around this exchange-traded fund. That’s partly because the ARKX ETF release date comes nearly two years after Wood’s last fund launch.
This is another actively managed ETF focused on providing investors with long-term upside potential. This time, the company is providing investors with an ETF targeted at space exploration stocks. Indeed, these innovative companies are ones Cathie Wood believes continue to hold high demand today and should outperform over the long run.
Accordingly, let’s dive into what this ETF is set to hold, and why investor interest is so high.
ARKX ETF: A Space Race Bet, Sort Of
Ahead of the ARKX ETF release date, here are a few tidbits that ought to be interesting:
- According to the fund’s prospectus, four categories of companies will be included in this ETF. These span the following industries: Orbital Aerospace Companies, Suborbital Aerospace Companies, Enabling Technologies Companies and Aerospace Beneficiary Companies.
- Indeed, investors are excited about what will be Wood’s eighth fund. The fund manager hopes to capitalize on increasing investment in SPACs in the space sector of late.
- Approximately 20% of the fund will be concentrated in Trimble (NASDAQ:TRMB), The 3D Printing ETF (BATS:PRNT) and Kratos Defense & Security (NASDAQ:KTOS).
- Additionally, Virgin Galactic (NYSE:SPCE) will be included in this fund. It’s slated to be a 1.95% weighting, outside of the top 10 holdings of this fund.
- This fund is hoping to buck the trend of a growth-to-value rotation in the market today. Indeed, some investors may be concerned that various other Ark funds have underperformed the market this year.
- Over the past six months, a range of new space-related companies have gone public. Accordingly, it appears Wood will be on the hunt to add the best-quality growth names to her portfolio moving forward.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
