It's not too uncommon to see new exchange-traded funds (ETFs) debut on the ASX in this day and age. It seems that every other month sees a new fund float on the ASX. But a space-themed ASX ETF? That is a far rarer sight.
Last month, we discussed the impending debut of the BetaShares Space Industry ETF (ASX: RCKT), and what it could mean for investors interested in technology or space. Today, that ASX ETF has officially been listed on the stock market. RCKT units floated at $14 when the markets opened this morning. However, over the trading day, those units have drifted lower, and are currently going for $13.79 each at the time of writing.
So let's break down how this ETF works and what investors who are purchasing its units are actually buying.
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RCKT-ship? Meet the ASX's newest ETF
As its name implies, the Betashares Space Industry ETF aims to expose investors to a basket of global shares that are all leaders in the "global space economy". This is the first ETF on the ASX to have a space focus. It will do so by tracking the Solactive Space Industry Index.
Although RCKT does hold stocks that hail from nine different countries, it is heavily exposed to the United States. As of 8 May, 74.3% of this ASX ETF's weighted portfolio is dedicated to US stocks. Another 7.2% hail from Japan, its second-largest contributor. Other countries that are represented include Canada, France, South Korea, Sweden and Israel.
In terms of individual stocks, RCKT currently has 28 underlying holdings. These are quite top-heavy, though, with the two largest positions, Rocket Lab USA Inc and AST Spacemobile Inc making up 13.1% and 10.2% of the portfolio, respectively. Other top stocks include Planet Labs, Viasat Inc, and Echostar Corp. Interestingly, taking out the last spot in the ETF, with a weighting of just 0.3%, is the former poster child of commercial space exploration, Virgin Galactic Holdings.
Obviously, since this ETF has only just floated on the American market, it is impossible to provide performance fees. However, Betashares has shared the performance of the underlying index that RCKT tracks. As of 30 April, the Solactive Space Industry Index has returned a monstrous 167.25% over the preceding 12 months, and has averaged a return of 20.46% per annum over the past five years.
No doubt investors will be hoping that RCKT keeps up those kinds of numbers. But we shall have to wait and see.
The Betashares Space Industry ETF charges a management fee of 0.57% per annum.
