European investors will soon be able to invest in their first exchange-traded fund (ETF) focused on the space economy, the Procure Space UCITS ETF (LON:YODA).
The London-listed fund is launching on the HANetf platform and will track a bespoke SPACE index focused on pure-play space companies such as satellite operators and hardware makers, while reflecting the global exposure of the market with more than 80 countries operating in space.
This index is the first and only Certified Space Data Product recognised by space exploration advocacy and education organisation Space Foundation, HANetf said.
Back-testing of the performance of the YODA fund shows it would have achieved 71.4% returns in the past year.
“Space infrastructure is enabling numerous technologies like cloud computing, 5G, IoT, blockchain and beyond,” said Robert Tull, president of Procure Innovation and founder of the YODA ETF.
“We are pleased to provide access to the growing interest and investment in the space economy as well as the potential for investors in YODA. Given the interest of highly successful entrepreneurs such as Elon Musk, Sir Richard Branson and Jeff Bezoz is a huge indicator of the potential growth in this sector.”
He added: “The commercialisation of space, whether it’s launching satellites to help meet the growing demands for data transfer or to support GPS systems and weather forecasts shows how the space economy is a part of people’s everyday lives and not just about space exploration.”
Hector McNeil, co-founder and co-CEO at HANetf, said: “We have wanted to launch a Space ETF for a long time and are delighted that we are now able to deliver the first in Europe with a tailored index specifically designed to capture the exciting developments across the market.
“Satellite systems and technologies are a major growth market as the growth of Uber, Deliveroo and others demonstrate. GPS is central to their success just as satellites are vital for providing higher bandwidth and coverage in broadband and telecoms.
“And of course, space tourism and hospitality is coming closer to reality with would-be customers queuing to go boldly where no man has gone before as costs come down.”