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ARK Space Exploration and Innovation ETF launches tomorrow

55 points by vvincendon 6y ago

gopalv 6y ago
Most interesting think about this ETF is that it has possible positive exposure to an eventual SpaceX IPO. When SpaceX does go IPO, I'm sure Ms. Wood will be first in line to pick up some to roll into this ETF - so I think of this like a SPAC more than as a pure ETF.
- jiofih 6y ago
  Eh. More speculation on an already deflating market.
- DevKoala 6y ago
  You can already buy a chunk of SpaceX by buying Baron Partner’s shares.
  - repsilat 6y ago
    3% SpaceX, 47% TSLA. Not exactly a pure bet, but I guess you could short some of the others? https://finance.yahoo.com/quote/bptrx/holdings/ https://finance.yahoo.com/quote/bptrx/holdings/
- ra7 6y ago
  Why not just buy GOOGL if you want exposure to only SpaceX? Or some Fidelity or Baron's funds that hold SpaceX.
  - PascLeRasc 6y ago
    Does anyone know how those get worked into a mutual funds value? I actually have one of those Fidelity SpaceX funds in my 401k but I don’t understand how it works.
gvhst 6y ago
A list of holdings leaves me scratching my head: - JD.com? - Netflix? - Meituan? (Chinese Food Delivery) - John Deere? Either these are some very forward looking plays, or there weren't enough public securities to fill a diversified, thematic basket. https://ark-funds.com/wp-content/fundsiteliterature/holdings/ARK_SPACE_EXPLORATION_&_INNOVATION_ETF_ARKX_HOLDINGS.pdf https://ark-funds.com/wp-content/fundsiteliterature/holdings...
- TheAdamAndChe 6y ago
  I am reading Peter Thiel's book about startups, and he discusses the nature of technological monopolies. It says how most tech monopolies have common attributes: proprietary software, network effects, economies of scale, and a solid brand. It looks to me like those companies have all of that.
  - gvhst 6y ago
    Yes, but tech monopolies != Space Exploration
    - MR4D 6y ago
      I google'd it just for fun, but I thought you had made a really good point.... Sadly, and much to my disbelief, you are incorrect: MSFT: https://azure.microsoft.com/en-us/blog/introducing-azure-orbital-process-satellite-data-at-cloudscale/ https://azure.microsoft.com/en-us/blog/introducing-azure-orb... FB: https://www.wired.com/story/facebook-confirms-its-working-on-new-internet-satellite/ https://www.wired.com/story/facebook-confirms-its-working-on... GOOGL: https://earthengine.google.com/ https://earthengine.google.com/ AAPL: https://www.forbes.com/sites/johnkoetsier/2019/12/20/apple-building-satellite-to-iphone-tech-spacex-launching-42000-satellites-2--2--/?sh=54ba440368a7 https://www.forbes.com/sites/johnkoetsier/2019/12/20/apple-b... AMZN: https://www.forbes.com/sites/jonathanocallaghan/2020/07/31/amazon-is-going-to-add-3000-more-satellites-into-earths-orbit--and-people-are-not-happy/?sh=385a6ed37628 https://www.forbes.com/sites/jonathanocallaghan/2020/07/31/a... If I had more time, I'd run down more companies (Like, who even knows what Slack might be planning! )
- 6y ago
consumer451 6y ago
I’m not sure exactly what I expected to find in the holdings list, but there are some surprises to me in there. John Deere and Netflix would be two of them. However, I am a total ETF neophyte. Does anyone have any insights as to why companies like this would fit this category? https://ark-funds.com/wp-content/fundsiteliterature/holdings/ARK_SPACE_EXPLORATION_&_INNOVATION_ETF_ARKX_HOLDINGS.pdf https://ark-funds.com/wp-content/fundsiteliterature/holdings...
- cinntaile 6y ago
  John Deere probably does a lot of automation research as well as satellite imagery research, both are "skills" necessary for space. Netflix I have no idea, but they're pretty good at shipping image and sound data around on all kinds of wonky internet connections I guess? It would be interesting to know how and why they select the proportions of individual stocks.
ZeroCool2u 6y ago
Regardless of your thoughts on ARK, Cathie Wood, and ETF's in general. This fund is particularly interesting, because it might be one of the only chances for non-institutions and non-accredited investors to get early exposure to an entirely new avenue of resource gathering. Non-planetary mining, etc. Very exciting!
- iamacyborg 6y ago
  Why would this get you more exposure vs simply buying the same public shares this ETF is made up of?
  - ZeroCool2u 6y ago
    The line of thought is that ARK will get a chance to purchase IPO shares of say SpaceX for the ARKX fund at a price that your average investor won't have available to them.
    - deleted 6y ago
      [deleted]
- hahahahe 6y ago
  And you work at the Fed? God help us.
Rebelgecko 6y ago
Their holdings are interesting. For specific companies, they're definitely weighted more heavily towards "OldSpace" Most of the non-space companies they have have pretty clear connections as suppliers (Xilinx, Nvidia, TSM). However some seem like a stretch unless I'm missing something. Maybe John Deere is planning on creating their own GNSS constellation and adding Netflix support to their tractors? I also can't imagine that space is a large part of Autodesk's customer base
greatgib 6y ago
I expected a fund focusing on innovative stocks but instead it looks like a lot of old school beasts that everyone would like to die such as boeing, thales or lockheed...
- consumer451 6y ago
  That was my initial thought as well. But I guess the companies in which I’m actually interested are all privately held.
elihu 6y ago
It seems like the main company everyone would be buying if they were public is SpaceX. So, that leaves space launch companies that are being crushed by SpaceX, and other companies that can make other space-related products or otherwise profit from space exploration. My impression is that we're getting really close to being able to launch substantial payloads to Mars relatively cheaply, but now that it's time to start packing we don't know what to send. There should be whole industries gearing up to manufacture space suits, rovers, habitats, habitat construction equipment, mining and earth-moving (or is the proper term Mars-moving?) equipment, giant Mars-suitable solar arrays, equipment to generate methane from solar power, water, and C02, and so on. Maybe all that's happening behind the scenes in a non-visible way, but still it seems like there's an opportunity there. I couldn't help noticing that ARK's logo looks suspiciously like the logo for the Outer Planets Alliance from The Expanse. Too bad their ticker isn't BLTALWDA.
- iamacyborg 6y ago
  My money would be on Planet if they were public.
- stcredzero 6y ago
  My impression is that we're getting really close to being able to launch substantial payloads to Mars relatively cheaply, but now that it's time to start packing we don't know what to send. We should industrially colonize the Moon. If we can produce oxygen, aluminum, titanium, iron, and glass on the Moon, it will make a bunch of other space infrastructure a lot cheaper. Solar Power satellites would become feasible, and then we wouldn't need fusion outside of having The Expanse-level of space military tech and other ultra high-spec space vehicle needs. And if we did have fusion, He3 would practically be a side effect of mining the other materials. Also, no natives with cultures and lives to ruin.
  - deleted 6y ago
    [deleted]
  - PeterisP 6y ago
    If the justification investing into space/moon infrastructure will make constructing further space/moon infrastructure cheaper, then that's a circular argument, it's the "how, not why" about the most efficient way to produce some terminal goal, but it does not assert how large the benefit of that terminal goal is going to be. For earth needs, it's cheaper and simpler and more efficient to mine titanium right here. There's a reasonable argument that mining all these things for space needs could be more efficient if done "on site", however, what are those space needs that will ultimately somehow benefit the people of Earth in a way that's more efficient than doing it down here? If the end goal is to produce power, no matter how you invest into space tech, IMHO it's going to be much more efficient to build large quantities of solar panels on Earth and place them in Sahara desert, than to construct a large-scale solar panel industry on the moon to have the same quantity of power through satellites. Sure, they'd be cool, but that's not a justification. When/if there's a resource shortage on earth causing some minerals to be orders of magnitude more expensive than today, then it would be worthwhile, but not yet.
tedunangst 6y ago
Where is ARKA, the etf of ark etfs?
- whatok 6y ago
  You have a small taste of that in this with the second largest holding PRNT. https://ark-funds.com/3d-printing-etf https://ark-funds.com/3d-printing-etf
- PascLeRasc 6y ago
  That’s ARKK.
ericmay 6y ago
Really was hoping for some direct exposure to SpaceX here but that seems to be lacking. Hard pass. I like ARKG and ARKF and the ARK(Robotics don’t remember the letter) are of interest. Personally hold ARKG.
subsubzero 6y ago
I don't really get alot of these companies for that ETF, I would pick: Virgin Galatic - space tourism, long range terrestrial flights. SpaceX - (Private) but a good pick for who takes the vanguard of space exploration. Boeing - maker of one of the next gen rockets. Planet Labs - (Private) satellite company making micro satellites. Lockheed Martin - Lots of exposure to space, rockets, unmanned drones etc.
- simonh 6y ago
  A lot of SpaceX fans would disagree with having Boeing and Lockheed on the list because they see them as old space, locked into the failing model of bloated cost plus contracts for wasteful expendable rockets that’s now doomed. I’m a SpaceX fan too, but if SpaceX cut costs to orbit by 10x or 100x someone is going to need to manufacture all the huge, powerful satellites, space stations, Mars habitats, probes and resource utilisation gear SpaceX will be launching. That’s Boeing and Lockheed, they have a crapton of experience making commercial and scientific space hardware. They’ll make a fortune.
0x008 6y ago
Does anybody here think SPACEX will go public before they have reached mars? I don't.

55 points by vvincendon 6y ago

Most interesting think about this ETF is that it has possible positive exposure to an eventual SpaceX IPO. When SpaceX does go IPO, I'm sure Ms. Wood will be first in line to pick up some to roll into this ETF - so I think of this like a SPAC more than as a pure ETF.

jiofih 6y ago
Eh. More speculation on an already deflating market.
DevKoala 6y ago
You can already buy a chunk of SpaceX by buying Baron Partner’s shares.
- repsilat 6y ago
  3% SpaceX, 47% TSLA. Not exactly a pure bet, but I guess you could short some of the others? https://finance.yahoo.com/quote/bptrx/holdings/ https://finance.yahoo.com/quote/bptrx/holdings/
ra7 6y ago
Why not just buy GOOGL if you want exposure to only SpaceX? Or some Fidelity or Baron's funds that hold SpaceX.
- PascLeRasc 6y ago
  Does anyone know how those get worked into a mutual funds value? I actually have one of those Fidelity SpaceX funds in my 401k but I don’t understand how it works.

gvhst 6y ago

A list of holdings leaves me scratching my head: - JD.com? - Netflix? - Meituan? (Chinese Food Delivery) - John Deere? Either these are some very forward looking plays, or there weren't enough public securities to fill a diversified, thematic basket. https://ark-funds.com/wp-content/fundsiteliterature/holdings/ARK_SPACE_EXPLORATION_&_INNOVATION_ETF_ARKX_HOLDINGS.pdf https://ark-funds.com/wp-content/fundsiteliterature/holdings...

TheAdamAndChe 6y ago
I am reading Peter Thiel's book about startups, and he discusses the nature of technological monopolies. It says how most tech monopolies have common attributes: proprietary software, network effects, economies of scale, and a solid brand. It looks to me like those companies have all of that.
- gvhst 6y ago
  Yes, but tech monopolies != Space Exploration
  - MR4D 6y ago
    I google'd it just for fun, but I thought you had made a really good point.... Sadly, and much to my disbelief, you are incorrect: MSFT: https://azure.microsoft.com/en-us/blog/introducing-azure-orbital-process-satellite-data-at-cloudscale/ https://azure.microsoft.com/en-us/blog/introducing-azure-orb... FB: https://www.wired.com/story/facebook-confirms-its-working-on-new-internet-satellite/ https://www.wired.com/story/facebook-confirms-its-working-on... GOOGL: https://earthengine.google.com/ https://earthengine.google.com/ AAPL: https://www.forbes.com/sites/johnkoetsier/2019/12/20/apple-building-satellite-to-iphone-tech-spacex-launching-42000-satellites-2--2--/?sh=54ba440368a7 https://www.forbes.com/sites/johnkoetsier/2019/12/20/apple-b... AMZN: https://www.forbes.com/sites/jonathanocallaghan/2020/07/31/amazon-is-going-to-add-3000-more-satellites-into-earths-orbit--and-people-are-not-happy/?sh=385a6ed37628 https://www.forbes.com/sites/jonathanocallaghan/2020/07/31/a... If I had more time, I'd run down more companies (Like, who even knows what Slack might be planning! )
6y ago

consumer451 6y ago

I’m not sure exactly what I expected to find in the holdings list, but there are some surprises to me in there. John Deere and Netflix would be two of them. However, I am a total ETF neophyte. Does anyone have any insights as to why companies like this would fit this category? https://ark-funds.com/wp-content/fundsiteliterature/holdings/ARK_SPACE_EXPLORATION_&_INNOVATION_ETF_ARKX_HOLDINGS.pdf https://ark-funds.com/wp-content/fundsiteliterature/holdings...

cinntaile 6y ago
John Deere probably does a lot of automation research as well as satellite imagery research, both are "skills" necessary for space. Netflix I have no idea, but they're pretty good at shipping image and sound data around on all kinds of wonky internet connections I guess? It would be interesting to know how and why they select the proportions of individual stocks.

ZeroCool2u 6y ago

Regardless of your thoughts on ARK, Cathie Wood, and ETF's in general. This fund is particularly interesting, because it might be one of the only chances for non-institutions and non-accredited investors to get early exposure to an entirely new avenue of resource gathering. Non-planetary mining, etc. Very exciting!

iamacyborg 6y ago
Why would this get you more exposure vs simply buying the same public shares this ETF is made up of?
- ZeroCool2u 6y ago
  The line of thought is that ARK will get a chance to purchase IPO shares of say SpaceX for the ARKX fund at a price that your average investor won't have available to them.
  - deleted 6y ago
    [deleted]
hahahahe 6y ago
And you work at the Fed? God help us.

Rebelgecko 6y ago

Their holdings are interesting. For specific companies, they're definitely weighted more heavily towards "OldSpace" Most of the non-space companies they have have pretty clear connections as suppliers (Xilinx, Nvidia, TSM). However some seem like a stretch unless I'm missing something. Maybe John Deere is planning on creating their own GNSS constellation and adding Netflix support to their tractors? I also can't imagine that space is a large part of Autodesk's customer base

greatgib 6y ago

I expected a fund focusing on innovative stocks but instead it looks like a lot of old school beasts that everyone would like to die such as boeing, thales or lockheed...

consumer451 6y ago
That was my initial thought as well. But I guess the companies in which I’m actually interested are all privately held.

elihu 6y ago

It seems like the main company everyone would be buying if they were public is SpaceX. So, that leaves space launch companies that are being crushed by SpaceX, and other companies that can make other space-related products or otherwise profit from space exploration. My impression is that we're getting really close to being able to launch substantial payloads to Mars relatively cheaply, but now that it's time to start packing we don't know what to send. There should be whole industries gearing up to manufacture space suits, rovers, habitats, habitat construction equipment, mining and earth-moving (or is the proper term Mars-moving?) equipment, giant Mars-suitable solar arrays, equipment to generate methane from solar power, water, and C02, and so on. Maybe all that's happening behind the scenes in a non-visible way, but still it seems like there's an opportunity there. I couldn't help noticing that ARK's logo looks suspiciously like the logo for the Outer Planets Alliance from The Expanse. Too bad their ticker isn't BLTALWDA.

iamacyborg 6y ago
My money would be on Planet if they were public.
stcredzero 6y ago
My impression is that we're getting really close to being able to launch substantial payloads to Mars relatively cheaply, but now that it's time to start packing we don't know what to send. We should industrially colonize the Moon. If we can produce oxygen, aluminum, titanium, iron, and glass on the Moon, it will make a bunch of other space infrastructure a lot cheaper. Solar Power satellites would become feasible, and then we wouldn't need fusion outside of having The Expanse-level of space military tech and other ultra high-spec space vehicle needs. And if we did have fusion, He3 would practically be a side effect of mining the other materials. Also, no natives with cultures and lives to ruin.
- deleted 6y ago
  [deleted]
- PeterisP 6y ago
  If the justification investing into space/moon infrastructure will make constructing further space/moon infrastructure cheaper, then that's a circular argument, it's the "how, not why" about the most efficient way to produce some terminal goal, but it does not assert how large the benefit of that terminal goal is going to be. For earth needs, it's cheaper and simpler and more efficient to mine titanium right here. There's a reasonable argument that mining all these things for space needs could be more efficient if done "on site", however, what are those space needs that will ultimately somehow benefit the people of Earth in a way that's more efficient than doing it down here? If the end goal is to produce power, no matter how you invest into space tech, IMHO it's going to be much more efficient to build large quantities of solar panels on Earth and place them in Sahara desert, than to construct a large-scale solar panel industry on the moon to have the same quantity of power through satellites. Sure, they'd be cool, but that's not a justification. When/if there's a resource shortage on earth causing some minerals to be orders of magnitude more expensive than today, then it would be worthwhile, but not yet.

tedunangst 6y ago

Where is ARKA, the etf of ark etfs?

whatok 6y ago
You have a small taste of that in this with the second largest holding PRNT. https://ark-funds.com/3d-printing-etf https://ark-funds.com/3d-printing-etf
PascLeRasc 6y ago
That’s ARKK.

ericmay 6y ago

Really was hoping for some direct exposure to SpaceX here but that seems to be lacking. Hard pass. I like ARKG and ARKF and the ARK(Robotics don’t remember the letter) are of interest. Personally hold ARKG.

subsubzero 6y ago

I don't really get alot of these companies for that ETF, I would pick: Virgin Galatic - space tourism, long range terrestrial flights. SpaceX - (Private) but a good pick for who takes the vanguard of space exploration. Boeing - maker of one of the next gen rockets. Planet Labs - (Private) satellite company making micro satellites. Lockheed Martin - Lots of exposure to space, rockets, unmanned drones etc.

simonh 6y ago
A lot of SpaceX fans would disagree with having Boeing and Lockheed on the list because they see them as old space, locked into the failing model of bloated cost plus contracts for wasteful expendable rockets that’s now doomed. I’m a SpaceX fan too, but if SpaceX cut costs to orbit by 10x or 100x someone is going to need to manufacture all the huge, powerful satellites, space stations, Mars habitats, probes and resource utilisation gear SpaceX will be launching. That’s Boeing and Lockheed, they have a crapton of experience making commercial and scientific space hardware. They’ll make a fortune.

0x008 6y ago

Does anybody here think SPACEX will go public before they have reached mars? I don't.